XN000022-1995-06-16 — Page 5

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"To review the decision-making process in the Prosecutions Division of the Legal Department with special reference to the institution and conduct of proceedings, having regard to the constitutional independence of the prosecuting authority, with a view to making recommendations on necessary improvements to that process in order

to -

minimise legal-technical errors;

(a)

(b)

ensure consistency of advice and policy;

(c)

ensure that proper checks and balances are in place; and

(d)

maximise transparency and accountability

and to produce a report for submission to the Legislative Council by December 1995."

End/Friday, June 16, 1995

Investigation report on Paragon Holdings published

The Government today. (Friday) published the report of the investigation regarding the membership of CNPC (Hong Kong) Ltd (formerly known as Paragon Holdings Ltd) during the period from March 1 to May 31, 1993.

A copy of the report had forwarded to the company as well.

The Secretary for Financial Services, Mr Michael Cartland, said: "On November 12, 1994, the Financial Secretary appointed Ms Helen Lee of the Securities and Futures Commission (SFC) as an inspector under section 33 of the Securities (Disclosure of Interests) Ordinance to investigate and report on the membership of the company in order to determine the true persons who are or have been financially interested in the success or failure of the company or are able to control or materially influence its policy during the period from March 1, 1993 to May 31, 1993, and on any subsequent transactions in shares material to the investigation.

"The inspection focused on the ownership of 229,160,000 shares of the company, which accounted for about 10 per cent of the shareholding at the relevant time." he said.

Ms Lee submitted her report to the Financial Secretary in late March.