LAM QUITS EXCO
Public prosecutor finds insufficient evidence to secure n
Despite being cleared of misconduct in office
Franklin Lam Fan-keung, who sold two apartments last year shortly before the announcement of market curb measures, quit the Executive Council (ExCo) even though the prosecution found insufficient evidence to press misconduct charges against him.
Lam, a supporter of Chief Executive Leung Chun-ying, was appointed as a non-official member of ExCo since the inauguration of the new administration. He has taken indefinite leave, however, since the allegations mounted last November.
In his statement on Thursday, he said he was pleased the investigation of the Independent Commission Against Corruption (ICAC) has justly cleared him of any wrongdoing.
“It is highly regrettable that certain individuals and media have made allegations against me that are not factual, intending to conduct a public trial,” he said. “I felt very bad that my family, for no reason, has suffered because of my public service to Hong Kong.”
While he thanked those for the support and trust he received in the past year, he did not elaborate on why he chose to quit despite a favorable conclusion. Staff at Lam’s consultancy firm told the media that he was out of town.
Chief Executive Leung Chun-ying said he accepted Lam’s resignation “with regret” in a statement. He thanked Lam for his contributions.
Lam sold two Mid-Levels apartments in September and October, two to five weeks before the announcement and enforcement of a new wave of buyer stamp duties, to curb the surge in home prices.
The apartments were later revealed to have been put on sale in June, but Lam also revealed in an interview that the real estate agent could “keep the upside” if a buyer makes an offer higher than the agreed bottom price.
Complaints were subsequently logged with the ICAC, which launched investigations on the alleged offenses of misconduct in public office and offering an advantage to an agent.
Director of Public Prosecutions Kevin Zervos decided there was no reasonable prospect to secure a conviction in court. He gave his reasons at a press briefing on Thursday.
Though the government had begun formulating new measures on Aug 23, 2012, non-official ExCo members were not briefed about them until Oct 26. By which time, the apartment had already been sold through the agency and Lam was absent at the adhoc meeting.
Lam was thus cleared of the misconduct offense. “It’s powerful evidence in his favor that he already put the properties on the market. It’s going to be extremely difficult to argue otherwise that he used government information,” said Zervos.
Investigators also found out that the real estate agent had made an entry in the agency’s computer system that the agent would collect the price difference between the bottom price and selling price. It was thus no secret to the agent’s principal.
Eventually, the agent only earned the routine 1 percent commission from the deal on Lam’s apartment. Lam sold another flat directly to the wife of his friend, while the other two went unsold.
Zervos said it was a matter of disclosure to the principal, which was the agency in this case, and no evidence showed that there was extra commission paid under the table. Lam was thus cleared of the second charge.
Zervos dismissed any degree of political consideration and said the open briefing was an assurance of impartiality. “I know you will have views, and you will have questions, but you have got to remember we have to abide by a fair and proper evaluation of the evidence and it’s according to our prosecution policy,” he said.
The independent Operations Review Committee also agreed with the ICAC’s conclusion that the case needed no further investigation.
Lam is the second non-official ExCo member to quit after Barry Cheung Chun- yuen. ExCo member Regina Ip Lau Suk-yee said she believes many others are still ready to serve the community without such disclosure worries.
There are 14 non-official ExCo members and the chief executive’s office told Cable TV there was no plan to invite more.