HONG KONG: Tony Chan appointed his first younger brother as a director of his companies because the fung shui proponent wanted to keep his ownership in these companies a secret, the Court of First Instance heard yesterday.

The brother, Bobby Chan, testifying on the 36th day of the probate trial, said he gave up his job at Wing On Department Store with a monthly salary of HK$7,000 to work for his eldest brother. He is paid HK$30,000 a month at present by Tony.

Bobby only paid about HK$100,000 for a HK$6 million flat in Laguna City, and the remaining sum was paid by Tony, the court heard.

Bobby was appointed as director of various companies registered in the British Virgin Islands, including Offshore Group Holdings Limited (OGHL).

Justice Johnson Lam asked Bobby the reasons behind Tony appointing him as director.

"He (Tony) told me that he was busy and he did not want to use his name for this matter," Bobby said. "He did not want other people to know that he owned these companies."

Bobby said he does not know why his eldest brother wants to keep the matter secret.

The first younger brother said he helped Tony process many large payments that involved more than HK$10 million given by Nina Wang, the late tycoon whose estate is at the center of a battle between Tony Chan and Chinachem Charitable Foundation. He also processed the HK$688 million payment by Wang with the OGHL account under his name.

Bobby told the court that he acted on Tony's instructions for company matters, including signing documents.

Tony would prepare the documents and asked Bobby to sign, Bobby told the court.

One of the documents concerned the sale of 49 percent of shares of a company called Tribiani, which is owned by OGHL, to a third party. The document said Bobby guaranteed that Tribiani was legally operating and not involved in lawsuits.

Bobby told the court that he only knew that Tribiani had owned vehicles and properties.

Chinachem Charitable Foundation counsel Benjamin Yu asked Bobby whether he was aware that he might need to pay compensation if his guarantee was false.

Bobby replied that he did not discuss with Tony about the content of the documents, and that Tony just asked him to sign.

The younger brother said he maintained a close relationship with Tony, but was kept in the dark about Tony's marriage registration for six months until a wedding banquet, and Tony's fung shui school until it was reported by the media.

Meanwhile, one of Tony's close aides, Anita Chow, said Nina Wang's purchase of shares in RCG, in which Tony was one of the major shareholders, around the period of the company's share placement exercises was a coincidence.

Chow, RCG's deputy chairman, said the company's management was not influenced by Tony to launch the three placement exercises.

Chow said some shareholders of the company were very concerned about the probate action. Wang is the major shareholder of the company.

The shareholders are concerned about the impact to the company if Chinachem win the lawsuit.

Another of Tony Chan's aides, Raymond Chu, said yesterday he gave up his job as a solicitor, which gave him HK$150,000 a month, to work for Chan for HK$30,000 a month in 1999 because he wanted to pursue a business career.

Chu said Tony Chan was introduced to him as a fung shui master in 1992. He said Chan was good at reading a person's face, but they had not discussed fung shui.

Chu will continue his testimony today.

(HK Edition 07/09/2009 page1)