SHKP director’s use of Singapore account not an elaborate disguise, Hui trial hears
Thomas Chan Kui-yuen alleged to have funnelled millions of dollars from developer's co-chairmen through his company that were bound for former chief secretary
PUBLISHED : Thursday, 19 June, 2014, 3:48pm
UPDATED : Thursday, 19 June, 2014, 5:29pm
Austin Chiu [email protected]
Thomas Chan Kui-yuen was described by the prosecution as a loyal SHKP employee. Photo: Dickson Lee
A lawyer for a Sun Hung Kai Properties employee on Thursday rejected the allegation that he was used by the Kwok brothers to transfer millions of dollars to former no 2 official Rafael Hui Si-yan in an elaborate process designed to disguise the payments.
As Hui’s corruption trial continued in the Court of First Instance, Ian Winter QC, representing SHKP executive director Thomas Chan Kui-yuen, was cross-examining a director of financial services firm UBS Hong Kong over movements of funds from UBS accounts held in Chan’s name or the name of his company, Villalta.
The prosecution alleges that SHKP co-chairmen Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen channeled HK$8.5 million and HK$11 million in 2005 and 2007 respectively to Chan, who then moved the money through his company to Hui’s longtime friend Francis Kwan Hung-sang, who eventually paid the money to Hui.
It is alleged that Hui was paid the money to be the "inside man" and "eyes and ears" of the developer in the government.
Lead prosecutor David Perry QC had earlier described Chan, 67, as a “loyal employee of SHKP” who was used by the Kwok brothers to distance themselves from the payments.
The court heard that Chan had obtained residency in Singapore in 1987 and set up an account for Villalta with UBS in Singapore in October 1990.
“It is very common for companies in their separate legal identities to hold bank accounts. They are not a facade or a cover for the people to own a company, correct?” Winter asked.
Gerry Cheung Gee-yin, director of UBS Hong Kong’s litigation and investigation department, agreed.
Cheung also had no objection to Winter’s suggestion that it was common for Hong Kong people to acquire residence and hold bank accounts outside the city before 1997.
“That was what Mr Chan did between 2005 and 2008. Correct?” Winter asked, referring to the fact that Chan had residency in Singapore and held an account there during the period that the alleged payments to Hui took place.
“I’m not sure,” Cheung answered.
Cheung agreed with Winter that the Villalta account with UBS was used as the Chan family’s bank account. The court heard that Chan opened the account jointly with his wife in 1990 and in 2000 he added his children, Carrie and Kevin, as signatories to the account.
Winter said Chan signed a declaration in September 2009 which authorised UBS to provide his identity to Hong Kong brokers and regulators upon request.
Cheung agreed that the bank received no instruction from Chan that his address should not be displayed.
Winter said that although the Villalta account was a Hong Kong dollar account opened in Singapore, it was intended to be operated by UBS Hong Kong. Cheung agreed.
Winter suggested that all of the documents that Cheung produced for the court were found in Hong Kong and that nothing had to be obtained from the bank in Singapore. Cheung again agreed.
Hui, 66, faces eight charges related to bribery and misconduct in public office.
Thomas Kwok, 62, faces one charge of conspiracy to offer an advantage to Hui and two counts of conspiracy to commit misconduct in public office. Raymond Kwok, 61, faces four charges, including one with Hui of furnishing false information.
Chan and former Hong Kong stock exchange official Francis Kwan Hung-sang, 63, each face two charges.
All pleaded not guilty. The trial continues
