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Following is a question by the Hon Fred Li and a reply by the Acting Financial Secretary, Professor K C Chan, in the Legislative Council today (June 3):
Question:
At the special meeting of the Panel on Financial Affairs held on May 21, the Financial Secretary (FS) revealed that he had appointed a three-member selection team to make recommendations to him on the candidates for the successor of the Chief Executive (CE) of the Hong Kong Monetary Authority (HKMA), and a retired personnel consultant had been appointed to assist the team, and that the selection exercise concerned had already reached the final stage. In this connection, will the Government inform this Council:
(a) as it has been reported that the selection team had already commenced work at the end of last year, of the reasons for FS not making immediate announcement; and of the relationship between the selection team and the Governance Sub-Committee of the Exchange Fund Advisory Committee;
(b) of the work procedures of the selection team and its criteria for selecting candidates, as well as the reasons for the selection team not reporting its work to the public; whether any head-hunting agency has been engaged to assist the selection team and whether the aforesaid personnel consultant was providing assistance free of charge; and
(c) of the reasons for not conducting an open recruitment for the post of the CE of HKMA?
Reply:
President,
As the Financial Secretary (FS) is now on overseas duty visit, I am speaking on his behalf.
Section 5A(1) of the Exchange Fund Ordinance provides the FS with clear powers and responsibilities to appoint the Monetary Authority and draw up the terms of appointment. The FS considers the present arrangement appropriate. The FS will act in a fair and impartial manner according to law to ensure that the appointee is fit and proper and that the appointment is in the best interests of Hong Kong. To my knowledge, open recruitment of governors of central banks is currently not a common international practice.
The Governance Sub-Committee is set up under the Exchange Fund Advisory Committee within the Hong Kong Monetary Authority (HKMA). Its main function is to make recommendations to the FS on the remuneration and human resources policies of the HKMA and related matters. To avoid any unnecessary misunderstanding on the part of the public, the FS has earlier decided to invite Mr Victor Fung, Mr Marvin Cheung and Mr John Bond to recommend suitable candidates to him. He has also invited Mr Martin Tang, a retired personnel consultant, to assist in the recruitment work. All of them are providing assistance free of charge.
As explained by the FS, the selection exercise has already reached the final stage. Upon completion of the exercise, he will announce the name of the successor of the Chief Executive of the HKMA and provide the relevant details.
I will listen carefully to the views of Members and report them to the FS in due course.
Ends/Wednesday, June 3, 2009
Issued at HKT 12:25
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