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Following is a question by the Hon Albert Ho and a written reply by the Secretary for Home Affairs, Mr Tsang Tak-sing, in the Legislative Council today (March 25):
Question:
Section 68 of the District Councils Ordinance (Cap. 547) provides that "[a] District Council may make standing orders for regulating its procedure and that of its committees". It is learnt that individual District Councils (DCs) have, on the basis of the model District Council Standing Orders (model DCSO) prepared by the Home Affairs Department, made their own standing orders which invariably have incorporated the following provision of the model DCSO on declaration of interests: the DC Chairman shall decide whether a DC member (other than the DC Chairman) who has disclosed an interest in a matter may speak or vote on that matter, may remain in the meeting as an observer, or should withdraw from the meeting (or if the DC Chairman has disclosed an interest in a matter, the DC Vice Chairman shall make such a decision). Regarding the system of declaration of interests for DCs, will the Government inform this Council:
(1) whether the authorities know if there is any DC Chairman who, when making a decision in accordance with the aforesaid provision, currently adopts the following practice: requiring DC members who are unremunerated (i.e. without any honorarium, allowances or other material benefits) directors of public or private companies/organisations (including non-profit-making welfare organisations) (i) to disclose such connections and/or withdraw from the meeting when a funding proposal relating to such companies/organisations is being discussed by the DC or its committees, and (ii) to refrain from voting when a vote is taken on such a funding proposal; if there is, of the details; and
(2) whether the authorities will review the provisions of the model DCSO on declaration of interests and incorporate the practice mentioned in (1) into the model DCSO, as well as recommend various DCs to consider adopting such practice; if they will, of the details; if not, the reasons for that?
Reply:
President,
To avoid conflict of interests, the Home Affairs Department has, with reference to the guidelines for a two-tier reporting system devised by the Independent Commission Against Corruption, formulated provisions on the operation of District Councils (DCs), under which DC members are required to declare their general pecuniary interests or other material benefits upon resumption of office, and make a declaration when there is any conflict of interests.
The provisions concerning declaration of interests have been incorporated by the 18 DCs into their District Council Standing Orders for compliance by DC members.
The two-tier reporting system comprises:
(A) Register of Members' Interests
DC members shall provide respective DC Secretaries with particulars of their personal interests, including remunerated proprietorships, partnerships or directorships of public or private companies; remunerated employments, offices, trades or professions; financial sponsorships received; land or property ownerships; and shareholdings by them, their spouses and infant children.
(B) Declaration of Interests at Meetings
Any DC member who has pecuniary or other interests in any matter under consideration by the DC concerned or has connections with the beneficiaries or potential beneficiaries, including those on tender, quotation and DC Funds, must, as soon as practicable after being aware of it, declare such to the DC concerned prior to the discussion of the relevant item. The DC Chairman shall decide whether the member may speak or vote on that matter, or should withdraw from the meeting.
Generally speaking, the DC Chairman will consider if a DC member has potential or genuine conflict of interests in the item being dealt with by the DC concerned based on the interests declared by the member, and decide on such options as whether he should withdraw from the meeting, or may be in attendance while refraining from voting or discussion, may discuss while refraining from voting, may discuss and vote, etc.
My reply to the two parts of the question is as follows:
(1) According to the records of the 18 DC Secretariats, from January 2012 to February 2015, no DC Chairman required DC members who are directors of public or private companies/organisations (including non-profit-making welfare organisations) and unremunerated (or without any honorarium, allowances or other material benefits) (i) to disclose such connections and/or withdraw from the meeting when a funding proposal relating to such companies/organisations is being discussed by the DC or its committees, and (ii) refrain from voting when a vote is taken on such a funding proposal.
(2) As the reporting system in the sample District Council Standing Orders is running effectively and is generally accepted by and familiarised to all DCs, there is no need at present to review the provisions on declaration of interests therein.
Ends/Wednesday, March 25, 2015
Issued at HKT 14:36
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