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The following is issued on behalf of the Electoral Affairs Commission:

A regulation providing for the procedures for handling claims for financial assistance from candidates running in the Legislative Council (LegCo) elections is gazetted today (December 19).

The Electoral Affairs Commission (Financial Assistance for Legislative Council Elections)(Application and Payment Procedure) Regulation, made by the Electoral Affairs Commission (EAC), will be tabled in the LegCo on January 7, 2004.

When the Legislative Council (Amendment) Ordinance 2003 was enacted in July this year, the new Part VIA of the Ordinance provided for a Financial Assistance Scheme for candidates standing in LegCo elections, a spokesman for the Commission said.

Under the Scheme, candidates or lists of candidates who get elected or who have received 5% of valid votes or more will be given financial assistance as follows:

(a) in respect of candidates in a contested geographical or functional constituency, the amount payable is the lowest of -

(i) the amount obtained by multiplying the total number of valid votes cast for the candidate or list of candidates by the specified rate (now $10 per vote); or

(ii) 50% of the declared election expenses of the candidate or list of candidates; or

(iii) if the declared election expenses of the candidate or list of candidates exceed the corresponding declared election donations, the difference in amount between those expenses and donations.

(b) in respect of uncontested geographical or functional constituencies, the amount payable is the lowest of -

(i) the amount obtained by multiplying 50% of the number of registered electors for the constituency by the specified rate; or

(ii) 50% of the declared election expenses of the candidate or list of candidates; or

(iii) if the declared election expenses of the candidate or list of candidates exceed the corresponding declared election donations, the difference in amount between those expenses and donations.

"Part VIA of the amended LegCo Ordinance empowers the EAC to make regulations to provide for the procedures for handling claims for financial assistance and effecting payment by the Chief Electoral Officer (CEO)," the spokesman said.

The Regulation stipulates that a claim for financial assistance must be made by a candidate or a list of candidates. In compliance with the LegCo Ordinance, the claim form must be accompanied by an election return and an auditor's report.

"We have consulted the Hong Kong Society of Accountants (HKSA) on the standard to be adopted by the auditor, who will be required to audit the accounts of the declared election expenses and the declared election donations in accordance with the Standard on Assurance Engagements 200, High Level Assurance Engagements, issued and as amended by the Council of HKSA from time to time," the spokesman said.

After verifying the claim, the CEO will certify the amount of financial assistance payable to the candidate/list of candidates and notify the Director of Accounting Services to make the payment.

The Regulation also contains provisions for withdrawal of claims, payment of claims after verification and recovery of payment.

Ends/Friday, December 19, 2003

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