HONG KONG: Proceedings of a Legislative Council (LegCo) select committee inquiring in the post-retirement career of former housing director Leung Chin-man are expected to come to a lurching halt, following a decision in the Court of First Instance yesterday. The court accepted petitions by two New World Development executives requesting a judicial review and challenging summonses that the two appear before the committee to give evidence.

Today's hearing, scheduled to hear the evidence of New World China Land chairman Henry Cheng and executive director Stewart Leung Chi-kin, is cancelled.

The two executives, who had testified at earlier hearings, filed a judicial review application to the court last Friday in opposition to the summonses.

Counsel for the two, John Swaine, argued in court yesterday that Article 73 of the Basic Law stipulated that the whole of the LegCo has the power to summon witnesses.

However, the select committee is comprised of less than half the LegCo members and the committee has no power to exercise the Legislative Council (Powers and Privileges) Ordinance.

Swaine also said the focus of the select committee has moved outside its scope because the employment of housing director Leung to oversee New World's hotel projects on the mainland is not related to his pre-retirement service.

The controversy concerning the post-retirement career of the former housing director arose after he was named deputy managing director and executive director of New World China Land in July 2008. When Leung was the Director of Housing, the government sold a disused and unoccupied piece of land to New World Development for HK$864 million, a figure below market. The property was used for a private sector participation scheme project named Hung Hom Peninsula.

The granting of the petition will inevitably delay the work of the select committee, Justice Andrew Cheung said, but the delay is the price to be paid by the society which upholds the rule of law that is cherished by all members of the society.

Gerard McCoy, counsel for the select committee, argued that the Basic Law is only a framework that does not list the details referring to powers of LegCo committees.

He said Article 48 of the Basic Law, which stipulates the Chief Executive has the powers to decide whether government officials should give evidence before the LegCo or its committee, implies the power of the select committee.

He also argued that it is not appropriate for the court to interfere in the internal operation of the legislature.

The LegCo select committee chairman, Li Fung-ying, said the judicial review will not affect the committee constitutionally.

The committee will summon the former housing director Leung to give evidence next week.

(HK Edition 07/15/2009 page1)