Leung Chin-man appointment controversy

The Leung Chin-man appointment controversy occurred in Hong Kong in August 2008, when the former Permanent Secretary for Housing, Planning and Lands, Leung Chin-man, was named Deputy Managing Director and Executive Director of New World China Land Ltd.

There was widespread suspicion among members of the public that job offer was a quid pro quo for the favours he allegedly granted to its parent company, New World Development (NWD), in 2004. The Civil Service Bureau (CSB), which was responsible for vetting the appointments of former civil servants against potential conflicts of interest, admitted to failing in their duty to consider all relevant factors.

In 2004, while Leung was Director of Housing, the government sold an unused Private Sector Participation Scheme project. The sale of the Hung Hom Peninsula HOS housing estate to NWD took place at less than half of the original asking price.

In November 2005, Leung was criticised in an Audit Commission report, for having exercised his discretionary power before conferring with other government departments in 2001. Henderson Land Development had been granted permission to exclude the public transport terminus from the gross floor area in its building plan for their Grand Promenade development, thus gaining additional revenues of HK$3.2 billion as a result of the decision. The effect was to allow the addition of 10,700 square meters to the project.

Directorate officers wishing to take up outside work, paid or unpaid, full-time or part-time, during their final leave period before their formal departure from the Government and/or within a specified control period counting from the said departure, should apply for prior permission from the Secretary for the Civil Service (SCS) in accordance with detailed arrangements set out in CSB Circular No. 10/2005. According to procedures drawn up, civil servants of Leung's grade are subject to a 12-month 'sterilisation period' and required government approval to take up private sector posts within three years of leaving. Procedures laid down required that views from the relevant bureaux be taken into account.

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Wikipedia