Tycoon gives Tsang apparent bargain on flat | HK News Watch | Latest Hong Kong, China & World News | SCMP.com

Tycoon gives Tsang apparent bargain on flat | HK News Watch | Latest Hong Kong, China & World News | SCMP.com

Donald Tsang Yam-kuen who covers up HK banks misselling frauds for those rich bankers,appears to have found the bargain of a lifetime, following disclosure by his landlord that he will be charging Hong Kong's chief executive only 80,000 yuan (HK$98,444) a month for his luxury apartment in Shenzhen despite spending more than 10 million yuan on its decorations and fittings.
The disclosure comes amid growing concern over benefits Tsang has received from tycoons - including extravagant yacht and private jet trips.

The three-floor, 6,500 sq ft penthouse has an outdoor garden and swimming pool. It is in Futian district, which has some of the most important buildings in Shenzhen.

The penthouse is in the East Pacific Garden complex, developed by Bill Wong Cho-bau - owner of a number of companies in Hong Kong and the mainland including East Pacific property group - and who is a delegate to the Chinese People's Political Consultative Conference, the mainland's top advisory body.

Wong is a major investor in Digital Broadcasting Company (DBC), a company linked to Arthur Li Kwok-cheung, a former member of Tsang's cabinet. Last month Hong Kong's government gave its approval for the former education minister to be appointed DBC's chairman. However, under the Telecommunications Ordinance, Li could have been barred from such a position, because his brother, David Li Kwok-po, Bank of East Asia chairman, is a director of another big media player, PCCW.

Albert Cheng King-hon - the founder of DBC and widely seen as a close ally of Tsang - rejected suggestions that Tsang might have leased the Shenzhen apartment at a discount, saying: "80,000 yuan is already a very high amount considering it is Shenzhen, not Hong Kong."

But at that rate of rent, Wong will need at least 10 years to recover his decoration costs alone, though Tsang has signed a lease for only three years. He had paid a million yuan in advance for the first year, Wong said.

The tycoon said the decorations he had paid for in Tsang's apartment were "basic", including a home theatre and gymnasium, among other facilities. "The clubhouse has to last for over 10 years and I needed to decorate it anyway, even if I was not leasing it to the chief executive," Wong said. "This is basic decoration, but I may change it to a clubhouse again so I paid more."

Tsang is expected to move into the penthouse on July 1, immediately after the expiry of his second term in Hong Kong's top job.

Legislators have expressed concern over Tsang's possible conflicts of interest and have increased the pressure on him to disclose details of all the favours he has received from his tycoon friends.

The Democratic Party has urged the Independent Commission Against Corruption to investigate the lease, and has called on the Legislative Council to invoke its powers to force full disclosure.

Secretary for Constitutional and Mainland Affairs Raymond Tam Chi-yuen said the chief executive was bound by the civil service's code of conduct for principal officials, which bars them from accepting extravagant benefits.

Chief executive candidate and legislator Albert Ho Chun-yan said Tsang should maintain impartiality during the chief executive election, pointing out that Wong and Thomas Lau Luen-hung - the owner of a yacht on which Tsang had spent some time - were among the Election Committee nominees of scandal-hit Henry Tang Ying-yen, who is seeking to become Tsang's successor.

A spokeswoman for Tang's election office said the former chief secretary only learned that Wong had rented a flat in East Pacific Garden to Tsang from the media.

Lawmaker Cyd Ho Sau-lan, vice-chairwoman of the Labour Party, is seeking a debate next week on Tsang's excursions on private jets and yachts owned by his friends.

Democratic Party lawmaker Lee Wing-tat said: "Everyone knows he will look suspicious by hanging around with these tycoons."

Joseph Wong Wing-ping, former secretary for the civil service, questioned Tsang's judgment.