Bloomberg News

Hong Kong ICAC Arrests Ex-Official, Two Company Executives

March 29, 2012

Sun Hung Kai, Hong Kong’s biggest developer by market value, was suspended from trading today. Photographer: Jerome Favre/Bloomberg

Sun Hung Kai, Hong Kong’s biggest developer by market value, was suspended from trading today. Photographer: Jerome Favre/Bloomberg

Hong Kong’s anti-corruption bureau said it arrested a former government official and two company executives, after Cable TV earlier reported that Sun Hung Kai Properties Ltd.’s co-chairmen and consultant Rafael Hui were assisting in an investigation.

Five other people were earlier arrested for their alleged roles in the same suspected corruption case, the Independent Commission Against Corruption said in an e-mailed statement, without identifying anybody.

Sun Hung Kai, Hong Kong’s biggest developer by market value, was suspended from trading today with Cable TV showing co-chairman Raymond Kwok entering the commission’s headquarters. The developer has been run by Thomas and Raymond since the ouster as chairman in 2008 of their brother Walter, who alleged they opposed his questions over corporate governance matters.

“This is dynamite,” said Francis Lun, managing director at Hong Kong-based Lyncean Holdings Ltd. “It will not be good. All the skeletons from the closet will be exposed.”

Hui, formerly Hong Kong’s No. 2 official, resigned as an independent director of AIA Group Ltd. “to attend to other commitments,” the insurance company said in a statement today.

Margaret Ng, a spokeswoman for Sun Hung Kai, declined to comment, as did Alan Tse, spokesman for ICAC.

To contact the reporter on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net; Hwee Ann Tan at hatan@bloomberg.net


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