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The Finance Committee of the Legislative Council approved today (January 14) the Government's proposal to create a non-recurrent commitment of HK$11.9 million to pay the United States Government (USG) part of the assets which the Hong Kong Government (HKG) confiscated from a convicted drug trafficker and his associates.
The drug trafficker was arrested in Hong Kong in 1989 for drug trafficking to the United States (US) and was surrendered to the US in 1992 pursuant to judicial proceedings. He subsequently pleaded guilty in the US to drug trafficking.
In 1992, the USG requested that HKG share the drug trafficker's confiscated Hong Kong-based proceeds pursuant to a Hong Kong and US Agreement Concerning the Confiscation and Forfeiture of the Proceeds and Instrumentalities of Drug Trafficking, which was operational between January 18, 1991 and June 30, 1997.
In 1993, the two governments agreed to share the confiscated assets on a 50:50 basis, after deduction of 20% to cover costs.
The asset realisation process was finally completed in 2008. Assets confiscated by the HKG totalled HK$185.7 million and the forfeiture to the USG came to the value of HK$2 million.
According to the agreed arrangements, the USG should receive a net payment of HK$73.4 million after deducting HKG's share of the forfeited proceeds.
A spokesperson for the Security Bureau said, "Out of the proceeds confiscated in Hong Kong, the High Court is holding HK$61.5 million in a deposit account, with the remaining confiscated assets having been credited to the General Revenue. The Government will transfer HK$11.9 million out of the General Revenue and the balance in the deposit account of the High Court for making payment to the USG."
The spokesperson said that the HKG had all along been co-operating with foreign jurisdictions for the suppression of drug trafficking and combating of money laundering at the international level. The primary objective of mutual legal assistance was to combat transnational crime. Any financial gain arising from assets confiscated from drug traffickers was nothing more than an additional benefit. The Government would continue to maintain close links with other jurisdictions in suppressing transnational drug trafficking.
Ends/Friday, January 14, 2011
Issued at HKT 15:27
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