Brothers Thomas and Raymond Kwok, joint chairmen of Hong Kong property developer Sun Hung Kai Properties, were formally charged on July 13 with conspiracy to bribe a former Hong Kong public official,
the
Financial Times
reported.
If they are found guilty, they could receive a maximum seven-year jail sentence.
According to the
FT
report, the brothers denied the charges, and the company said they would continue as chairmen. They were first arrested in late March. An executive director at the company and a former senior executive at the Hong Kong Stock Exchange were also charged, as was Rafael Hui, the former official whom the Kwoks were accused of bribing. Hui served as a special adviser to Sun Hung Kai before becoming chief secretary to the Hong Kong government in 2005. The five men were granted bail until their next court appearance on October 12.
The Kwoks’ older brother, Walter, was arrested in May but was not charged along with the others. Walter Kwok, the former chairman of Sun Hung Kai, was ousted by his brothers in 2008. He was replaced by their mother, who retired last year and was replaced by her two younger sons.
A subsequent
Financial Times
report
said that for the first time in its 43-year history, Sun Hung Kai faces the prospect of not having a member of the Kwok family at the helm. The family has a 42% controlling stake. Earlier in July, the company’s executive committee was increased from seven to 12 members; all the new members are non-family executives. According to the
FT,
the company said two of those non-family executives were promoted to the newly created roles of joint deputy managing directors “to assist Thomas and Raymond Kwok in discharging their duties.” Ben Kwong of brokerage firm KGI Asia told the
FT,
“The company is trying to dilute the importance of the two co-chairmen.”
The company is the world’s second-largest developer by market capitalization; Thomas and Raymond Kwok are the second wealthiest Hong Kong tycoons after Li Ka-shing, according to the
FT
report.
The
FT
report added that Thomas Kwok’s son Adam, 29, and Raymond Kwok’s son Edward, 31, were named as alternative directors to their fathers. Analyst Kwong told the
FT
that although they are too inexperienced to join senior management immediately, he envisions that they would eventually take over. (Source:
Financial Times,
July 13, 2012 and July 16, 2012.)
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