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Engineering / Construction
Sydney, Australia
Nationality of Foreign Officials: Hong Kong
Summary of Allegations:
On 8 November 2011, directors of DTZ Holdings ("DTZ"), allegedly insolvent 200 year old British property services firm with heavy reliance on Leung Chun-Ying's network of managers and clients in Hong Kong and mainland China, allegedly voted to enter into deal with UGL Limited ("UGL") as preferred bidder. Leung was then Asia Pacific Director of DTZ.
On 24 November 2011, Leung allegedly announced his resignation from DTZ effective 4 December 2011.
On 28 November 2011, Leung allegedly announced his bid to run for Hong Kong CEO post.
On 2 December 2011, Leung allegedly signed a secret contract with UGL, under which UGL allegedly agreed to make payments, totaling £4 million (more than $A7 million), to Leung in exchange for Leung's support of DTZ sale and promotion of UGL's business activities in Asia. The agreement allegedly included an additional guarantee that UGL would pay Leung his outstanding £1.5 million bonus owed by the insolvent DTZ and equated to more than 5 percent of the purchase price.
On 4 December 2011, Leung resigned from DTZ and UGL completed its acquisition of DTZ. As a result of this deal, DTZ's shareholders and unsecured creditors received nothing, wiping out tens of millions of dollars in investments and debts.
On 25 March 2012, Leung won his election for Hong Kong CEO post.
In December 2012, Leung allegedly received first of his UGL payments.
Approximate Alleged Payments to Foreign Officials: USD 6.4 million (HKD 50 million)
Business Advantage Allegedly Obtained: Leung's support of DTZ sale and promotion of UGL's business activities in Asia
Agencies: Australia: Federal Police
Results:
Year Resolved:
Compliance Monitor: N/A
Ongoing: Yes
Details:
On 9 October 2014, following the publication of Fairfax Media's investigative report, Australian Senator Christine Milne referred the potential violation of Australia's foreign bribery laws to Australian Federal Police ("AFP") commissioner Andrew Colvin for investigation. Milne included a copy of December 2011 letter and schedule of agreement written by UGL's chief executive Richard Leupen and signed up Leung in her letter to the police commission noting that the letter may assist the AFP in determining whether any breach of Australian laws took place.
Agencies: Hong Kong: Independent Commission Against Corruption
Results: Prosecution of Public Officials
Year Resolved: 2018
Compliance Monitor: N/A
Ongoing: No
Details:
In September 2014, Democratic Party lawmaker Albert Ho Chun-Yan called on ICAC to investigate the alleged secret deal.
On 7 July 2016, ICAC announced that Rebecca Li Bo-lan, ICAC's Head of Operations, would resign as of 18 July 2016. Following the announcement, Albert Ho Chun-Yan accused the government, under Leung's influence, of terminating Rebecca Li Bo-lan from her post for her continued investigation into Leung and UGL allegations.
On 10 July 2016, Rimsky Yuen Kwok-keung, Secretary for Justice, promised a fair investigation against Leung despite the complaints that the Chief Executive Office had ignored ICAC document requests for a year.
On 11 July 2016, Simon Peh Yun-lu, ICAC chief, publicly took sole responsibility for Rebecca Li Bo-lan's termination for failure to meet the job requirements and denied that Leung had a role in the decision.
On 14 July 2016, Leung was questioned at the Legislative Council over accusations of improper payments, the independence of the ICAC, and whether he was running for another term in the upcoming year.
On 16 May 2017, Leung admitted that he had "made suggestions about the scope" of the investigation. A month later, it was reported that ICAC had opened a file on Leung's possible intervention.
On 12 December 2018 it was reported that the Department of Justice was not going to charge Leung, citing a lack of evidence.
Discovery Method: Media or Investigative Report
Details:
On 8 October 2014, Fairfax Media published an investigative report detailing allegation that a secret USD 7 million fee arrangement between Leung and UGL.
Country: Hong Kong