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End

(b)

(c)

36

The Commercial Crime Bureau (CCB) of the Police has been conducting investigations into allegations of criminal acts involving the Allied Group companies. The Securities and Futures Commission (SFC) is also considering regulatory action relating to possible breaches of the Take-overs and Mergers Code. On operational grounds, it would not be appropriate to discuss or reveal progress of their respective actions on the case.

These investigations are being undertaken as part of the regular enforcement and regulatory functions of the two bodies and are not separately costed. It would therefore not be feasible to provide a breakdown on the amount incurred so far on these Allied Group investigations.

While the inspector was carrying out his investigations, his work progress was closely supervised by a Steering Group chaired by the Financial Services Branch with representatives from the Legal Department and the SFC. The CCB also attended the Steering Group meetings. As indicated in (a) above, the inspection has achieved some significant results. As regards the current investigations, CCB and SFC are conscious of the need to ensure that the investigations are, and will continue to be, conducted in a cost-effective manner.

Mechanism for monitoring Commercial Crime Bureau

Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Security. Mr Peter Lai, in the Legislative Council today (Wednesday):

Question:

Will the Government inform this Council:

(a)

(b)

of the existing mechanism for monitoring the Commercial Crime Bureau in exercising its powers under the law in the execution of its duties; and

whether there are any channels open to those people who have been investigated by the Commercial Crime Bureau and have as a result suffered monetary loss or damage to their reputation, but who are later found to be innocent, to claim compensation; if so, what the details are?