*************************************************
The Permanent Secretary for Home Affairs, Mrs Betty Fung, issued the following statement in response to a report of a weekly today (April 1) on her property transaction:
"I deeply regret the unfair and groundless accusation against me in a report published by a weekly today that was based on speculation and suspicion.
"The transaction of the property that I currently occupy was introduced to me by an estate agent and price negotiation was also handled by the agent on my behalf. Throughout the process, I had never been in touch with the other party to the transaction. Negotiation was solely handled by the estate agent. The other side of the transaction is a registered company in Hong Kong. I did not know the identity of the shareholders of the company concerned before I received the media enquiry. Moreover, the representative of the company signing the transaction agreement was not the Ms Chan mentioned in the report. The accusation that there is a potential conflict of interest is based on the assumption that I was aware that Ms Chan was the other party involved during the transaction process. The assumption is totally groundless.
"The price difference between the two properties was recommended by the estate agent having regard to the valuation made by the bank(s) and subsequent bargaining carried out by the estate agent. The final transaction price reflected the actual situation of the two properties including the furnishing status. The Inland Revenue Department (IRD) subsequently conducted valuation on the properties for the purpose of determining the amount for stamp duty. It is not surprising if the IRD's valuation was higher or lower than the valuation made by the bank(s) and the final transaction price. What is most important is that I have paid the ad valorem stamp duty rates at the higher rate (Scale 1) in full in accordance with the difference in the value of properties as assessed by IRD.
"As for the transaction of the property concerned, I had sought legal advice in advance and was given to understand that the form of property transaction is in compliance with relevant legislation, including the specifications and regulations as stipulated in the Stamp Duty Ordinance. The arrangement was not special treatment. Any person can adopt this form of property transaction. As such, there is no potential conflict of interest between the form of transaction and my identity as a civil servant.
"I was then the Director of Leisure and Cultural Services and I had reported the above property transaction to the Home Affairs Bureau in accordance with the Civil Service Declaration Rules in a timely and factual manner."
Ends/Friday, April 1, 2016
Issued at HKT 22:03
NNNN
