Statement of the Chief Executive's Office
*****************************************

     The Civil Service Bureau (CSB) has reported to the Chief Executive on how Mr Leung Chin-man・s application for permission to join New World China Land Limited was processed and approved.

     The Chief Executive noted that the CSB had processed Mr Leung・s application in accordance with established procedures.  The prevailing system seeks to ensure that retired senior civil servants or those who are on final leave will not take up any work outside the Government which may constitute real or potential conflict of interest with their former government duties or cause negative public perception embarrassing the Government and undermining the image of the civil service, without at the same time unduly restricting the said individuals・ right to pursue employment or other work after ceasing government service.

     The CSB pointed out that Mr Leung Chin-man served as Director of Buildings from August 1999 to June 2002, and Permanent Secretary for Housing, Planning and Lands (Housing) and Director of Housing from July 2002 to January 2006, and ceased active service with the Government in January 2006.  In considering Mr Leung・s application, the CSB had, in accordance with established procedures, consulted the Transport and Housing Bureau and the Development Bureau, submitted the relevant information to the Advisory Committee on Post-service Employment of Civil Servants and sought the views of the Advisory Committee.  The Secretary for the Civil Service (SCS) then made the final decision to approve Mr Leung・s application.

     Since Mr Leung had ceased active service with the Government for more than two years and Mr Leung・s proposed appointment would involve business in the Mainland only, the relevant bureaux and CSB considered that Mr Leung・s proposed appointment would not constitute a conflict of interest with his former duties in the Government.  In giving approval to Mr Leung・s application, SCS has imposed the following restrictions in addition to the standard ones applicable to directorate civil servants -

(a) Mr Leung should not involve himself in any business of New World China Land Limited that is connected with Hong Kong;

(b) Mr Leung should not use or disclose to New World China Land Limited any classified or sensitive information acquired while he was in government service;

(c) Mr Leung should not participate in any discussion between New World China Land Limited and the Government; and

(d) Mr Leung should confine his proposed appointment to New World China Land Limited.

     The Chief Executive noted that Mr Leung was involved in the handling of the subject of the Hunghom Peninsula development and that one of the subsidiaries of the New World Development Company Limited was one of the developers involved.  The CSB did not mention this nor did it analyse the public perception of the fact that Mr Leung was involved in the handling of the subject when processing his application and presenting relevant documentation to the Advisory Committee. In the circumstances, the Chief Executive has requested the SCS to consult the relevant policy bureaux again on Mr Leung・s application for post-service employment with due regard to his involvement in the Hunghom Peninsula development and present the relevant information to the Advisory Committee for further advice on Mr Leung・s application.  Thereafter, the SCS would need to re-assess Mr Leung・s application and present a report to the Chief Executive.  

Ends/Friday, August 15, 2008
Issued at HKT 17:28

NNNN