Insights from Hong Kong

Posts Tagged ‘Donald Tsang’

Hong Kong’s Chief Executive: No More Free Gifts & No More Whistling!

In Hong Kong on 15 June 2012 at 2:27 PM

Goodbye – and thanks for all the stuff!

The people of Hong Kong are relieved.

Since he was exposed having accepted gifts from billionaire businessmen, the Chief Executive of this nation hasn’t strayed. He said he learned his lesson. Donald Tsang says he’s stopped accepting favours and gifts.

“Since my previous trip to Macau, I have not visited Macau again with so-called tycoons,” said Donald Tsang in legislature yesterday. “I have also avoided riding on private yachts or flying in the jets of others.”

Can you hear the collective sigh of relief? Imagine. The nation’s top public official won’t take rides in private yachts, or accept free tickets on private jets. How does he get around?

Back in March this year Chief Executive Donald Tsang was exposed for accepting gifts from well-known business people in Hong Kong. (See my earlier post.) He’d been on private yachts, staid free in luxury hotels, flown on private planes and planned to retire in a luxury apartment rented at a fraction of the fair market value.

Could these gifts have influenced his legislation? Not at all said Donald.

Then in June a government audit found Tsang was staying in presidential suites when traveling on business – and charging the Hong Kong taxpayers. (Again an earlier post on the subject.) His overall travel budget was astronomical.

(Please note, that even the French President had “jet envy” and ordered a US$230 million jet to compete with Air Force One in the USA. It wasn’t that Sarkozy was short.  He just envied Obama’s big fuselage.)

Yesterday Donald Tsang gave his final address before LegCo (Legislative Council). In this he said he’d learned from his mistakes. He hadn’t taken more gifts. He would serve out his remaining 15 days in power traveling on public transportation (or just staying home until he was free to fly first class again).

He even addressed an age-old suspicion that he was…a whistler.

Seems before he stepped into the role, Mr Tsang paid the former Chief Executive a visit. He whistled on his walk there. Days later Tung Chee-hwa stepped down and Donald “The Whistler” Tsang assumed the role. Maybe he should have hummed “Ode to Joy” instead?

“I have never whistled again since then,” said Tsang yesterday. “So I think we learn from what has happened.”

Many have called for Tsang to step down. Instead he plans to serve out the remainder of this month working on the issues that matter to the people of Hong Kong. When pressed as to what those might be, he said income disparity and housing concerns.

My advice? Let Chief Executive Tsang continue for 15 days if he plans to tackle those two issues. If he has time he might also reduce air pollution and improve public transport. Hell – if he does any of those things he’s outlined for the next 15 days I’d even encourage him to whistle again.

Perhaps he can practice whistling as he walks to address the Independent Commission Against Corruption (ICAC). They are investigating his acceptance of gifts from “so-called tycoons,” as Tsang calls them.

Donald can join Goofy and “Whistle While You Work”! 

Hong Kong’s Chief Executive: Lifestyles of the Rich and Elected

In Hong Kong, Public Affairs on 1 June 2012 at 4:02 PM

The public eye suddenly regained focus on Chief Executive Donald Tsang yesterday after two government reports were released – one on his extravagant overseas visits and one on his acceptance of undue favors from tycoons.

An Audit Commission report found that over the past five years, the Chief Executive’s Office spent a total of HK$12 million on 55 official visits overseas.  There were 49 nights when Tsang’s accommodations were covered by the Hong Kong government and all them exceeded the maximum budget for civil servants.  On two separate trips to London and Australia last year, Tsang’s accommodation expenses exceeded the budget by 22 times and 5 times respectively.

The most interesting piece of the Audit Commission report was on Tsang’s recent trip to Brazil which caused a public outcry and thus the commission stepping in.  In response to a TVB news report that Tsang stayed at a presidential suite that cost HK$50,000 per night, the CE Office explained back then that the room was chosen for its suitability to hold meetings.  But the commission found that only one meeting of 25 minutes was held in that suite of 4,000 square feet!  In all, the commission found the spending of public money on Tsang’s luxurious accommodation unjustified and unreasonable.

Separately, after a series of media investigative reports earlier this year that revealed Tsang’s traveling on his tycoon friends’ private jets and yachts, a special committee was set up to review the existing mechanism on conflicts of interests concerning top officials.  The committee, chaired by former chief justice of the court of final appeal Andrew Li, found the present system to be completely inappropriate and had a fundamental defect in exempting the chief executive from the anti-bribery regime that applied to politically appointed officials and civil servants.  The committee proposed 36 measures including the set up of an independent committee to approve the chief executive’s acceptance of benefits and making his acceptance of unapproved favor a criminal act.

Observers said the reports might be the central government’s deliberate effort to fix CY Leung’s slumping popularity (because everything is relative…)  In fact, Leung has already shown much political wisdom when he chose to travel on economy class to Beijing for his official appointment.  He also blogged about having curry fish balls and Chinese puddings for dinner during the campaign period.  But there is a price that Leung has to pay – Andrew Li’s recommendations are only meant to be forward-looking.  That means Tsang will be the last chief executive who gets to stay at rooms like the presidential suite in Mandarin Oriental Washington DC.

When Leung takes office on July 1st, the YMCA may be more his class.

Guest Author

Today I am fortunate to have a guest author for “Facing China.”

Vivian Au is a Director at Kreab Gavin Anderson Hong Kong.  Her specialty is in regulation management and public policy issues.

Donald Tsang, HK Chief Executive: Lifestyles of the Rich and Famous

In China, Hong Kong, Public Affairs on 6 March 2012 at 11:12 AM

The Chief Executive of Hong Kong, Donald Tsang Yam-kuen, is embroiled in a conflict of interest scandal. Evidence has been offered that Tsang accepted flights in private jets, rides in luxury yachts, discounted rent in a showcase apartment and today it’s alleged he spent the night in a high roller suite at a Macau Casino.

The problem with all of these is Tsang failed to pay fair market value. Oops. And he failed to disclose the gifts. Double Oops.

The South China Morning Post today has a front page feature revealing almost 60% of people in Hong Kong do not accept the Chief Executive’s explanations for the gifts. And 73% believe he should be suspended from duties while an investigation is conducted (see full results on-line if you are registered with SCMP.com).

“I believe after this, no one will dare to invite me to their yacht. And no one will invite me to their private jets,” said Hong Kong Chief Executive Donald Tsang to legislators, after an investigation was launched this week by the Independent Committee Against Corruption (ICAC). (See full story at The Shanghaiist).

The scandal also involves a luxury apartment across the border in Shenzhen, that appears hard to afford on the modest retirement pension provided to outgoing Chief Executives:

According to Ming Pao Daily News, the 6,500 sq ft unit is at least HK$50 million. The unit takes up the 35th to 37th floors of an upscale building located in the Futian District, near the Hong Kong border (according to Property Guru).

Local real estate agents estimate the rental to be HK$100,000 per month on the open market today.

Finally in today’s Chinese papers there are reports that Tsang and his wife stayed the night at the Palazzo suite in the Macau Venetian Hotel which only accommodates big gamblers.

It’s hard to imagine a political leader in any other country surviving a similar scandal. What if Barack Obama had a penthouse in Trump Towers and only paid a few hundred dollars a month rent? Or if Julia Gillard accepted international flights on the private jet of a mining company? Or if Angela Merkel spent weekends on a luxury yacht provided by a defence contractor? These hypothetical situations show the absurdity of the conflict of interest.

Today Donald Tsang’s reputation is in ruins, yet he continues to serve as we all await the results of an ICAC Inquiry. Until then, perhaps there is time for refreshing reading on Integrity – a free brochure available on the ICAC website.

Follow

Get every new post delivered to your Inbox.

Join 2,551 other followers

%d bloggers like this: