Civil service rules on private sector employment
The Government announced today (Thursday) that the Governor had accepted advice submitted to him by the Advisory Committee on Post-retirement Employment on the subject of private sector employment undertaken by the former Commissioner of Police, Mr Li Kwan-ha. The Committee also made recommendations on tightening the rules in the light of Mr Li's case.
In brief, the Committee recommended that:
(a) Mr Li Kwan-ha should be required to undergo a six month sanitisation period before being permitted to resume duty with Cheung Kong (Holdings) and Hutchinson Whampoa Limited, and
(b) the rules regarding employment during pre-retirement leave should be clarified and the rules regarding post-retirement employment should be tightened to avoid ambiguities and to ensure that civil service retirees seek approval as required by the pensions legislation.
In arriving at these recommendations the Committee noted that Mr Li's solicitor had advised him that because the contract offered to him by Cheung Kong and Hutchinson specifically excluded duties in Hong Kong, they would fall outside the scope of the pensions legislation.
The Committee did not accept this interpretation and felt that Mr Li should have applied for permission. Had Mr Li applied before starting private sector employment, the Committee considered that permission would have been given, on the grounds that his contracts with Cheung Kong and Hutchinson Whampoa specifically excluded duties in Hong Kong and that, on the facts presented, there was no apparent conflict of interest.
However, given Mr Li's senior position while in Government, the public would expect a reasonable break between ceasing active duty and joining the private sector. The Committee would most probably have recommended a six-month sanitisation period.
The Committee concluded that Mr Li had exercised poor judgement in relying solely on his solicitor's advice about whether permission was required, rather than seeking clarification from Civil Service Branch.