VOL. 5, NO. 2
EDITORIAL
133
guidance on their future methods and targets.
Despite these strong criticisms of the trial of Godber, there is one bright feature. As a result of the moderate and unemotional manner adopted by leading counsel conducting the Crown's case, Mr Scrivener's cogent and vigorous defence, and the trial judge's patent integrity, it is our view that Godber received as fair a trial as was possible in the circumstances. But the manner in which he was brought to trial is an entirely different matter. To echo the words of the English Court of Appeal in a recent and not dissimilar case: "Nothing of a similar kind must ever happen again."14
The Paul Lee affair
B.D.
IN THE summer of 1973, the life and apparent wealth of Godber figured prominently in the headlines of local newspapers. The previous year's financial boom had collapsed, but few people were aware of the fact that the seeds of a public scandal had been sown in the autumn of 1972. In Hong Kong's concrete jungle they germinated slowly and did not really bioom until the first and second interim reports of inspectors, appointed by the Financial Secretary to investigate the affairs of the Paul Lee Engineering Co. Ltd., were published in November 1974 and January 1975. The findings of the inspectors disclose evidence that the prospectus, dated November 17, 1972 when the company went public, was false, and/or misleading in material respects, that the published accounts of the company for 1972 and 1973 were "materially misleading," and that, in November 1973 when the Public Works Department was enquiring about the company's liquidity,,"a deliberately misleading statement of accounts" was submitted by the
company.
·
Despite these findings, no criminal proceedings have yet been started. One can understand the reluctance on the part of the authorities to invoke the criminal sanctions of the companies legislation, but they are surely in possession of sufficient information to take proceedings under sections 17. 19 and 21 of the Theft Ordinance1 or at common law in the form of the old-fashioned but still useful conspiracy to defraud. Is it not time that these measures to combat commercial crime were put to the service of the community?
24 Turner, note 1'1, supra.
18
Cap. 210, L.H.K. 1970 ed.
B.D.