TNAG-0990-FCO40-1209-Allegations-of-bribery-and-corruption-in-Hong-Kong-1980 — Page 96

G.S. 166

CONFIDENTIAL # 3

•HKK 380/2 PA

НК

19 AUG 1980

10

For discussion

on 12th August 1980

DESK OFFICE) INDEX

XCC(80/100

Copy No

31

of 80

8

MEMORANDUM FOR EXECUTIVE COUNCIL-

Prevention of Bribery Ordinance

(Chapter 201)

PREVENTION OF BRIBERY (AMENDMENT

AND VALIDATION) BILL 1980

Annexed for the consideration of Members is the Prevention

of Bribery (Amendment and Validation) Bill 1980.

Background

2

Section 10(1)(b) of the Prevention of Bribery Ordinance makes it an offence for a Crown servant in Hong Kong to have unexplained assets disproportionate to his official emoluments. The provision was introduced in 1971 and was aimed at dealing with Crown servants who were clearly corrupt but against whom it was not possible to produce evidence of specific instances of bribery.

3

Section 12(3) of the principal Ordinance provides that the court may order a person convicted of an offence under section 10(1)(b) to pay to the Crown -

(a) a sum not exceeding the amount of the pecuniary

resources;

or

(b) a sum not exceeding the value of the property,

the acquisition of which by him was not explained to the satisfaction of the court. Section 12(3) was enacted on 15th February 1974.

4

Earlier this year the Court of Appeal in the case of HO Shing - tuen v. the Queen held that an order under section 12(3) could not lawfully be made in respect of an offence under section 10(1)(b) arising before 15th February 1974. In that case the amount of penalty imposed on the appellant came to approximately $806, 000. The result of the Court of Appeal's decision is that the appellant is now entitled to recover that sum of money. Moreover, the Court of Appeal's decision impugns the validity of 13 other orders under which penalties amounting to some $30m have been imposed.

CONFIDENTIAL

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