Reuters, Hong Kong :
Hong Kong called off talks with protesting students on Thursday, dealing a heavy blow to attempts to defuse a political crisis that has seen tens of thousands take to the streets to demand free elections and calling for leader Leung Chun-ying to resign.
The government’s decision came as democratic lawmakers demanded anti-graft officers investigate a $6.4 million business payout to Leung while in office, as political fallout grows from the mass protests in the Chinese-controlled city.
It was not immediately clear what the students’ next move would be – whether to ramp up the street protests or make plans to fight another day. They were to hold a news conference later in the evening.
“Students’ call for an expansion of an uncooperative movement has shaken the trust of the basis of our talks and it will be impossible to have a constructive dialogue,” Chief Secretary Carrie Lam said on the eve of the planned dialogue.
She blamed the pull-out on students’ unswerving demands for universal suffrage, which she said was not in accordance with the Asian financial center’s mini-constitution, the Basic Law, and what she described as their illegal occupation of parts of the city.
Hours earlier, Hong Kong’s Justice Department handed to prosecutors the investigation of the business payout to Leung by an Australian engineering company.
Part of the brief includes “considering and deciding whether prosecution action is warranted” against Leung, who has refused to stand down in recent weeks over protesters’ calls for Beijing to keep its promise of universal suffrage.
The department said its decision was aimed at avoiding “any possible perception of bias, partiality or improper influence”.
The campaign against the former property surveyor and son of a policeman has extended from the streets to the city’s legislative chambers where democrats have threatened to veto major decisions and potentially cause policy paralysis.
Australia’s Fairfax Media reported this week that engineering firm UGL Ltd paid Leung a total of $6.4 million in 2012 and 2013 in relation to its acquisition of DTZ Holdings, a property consultant that employed Leung as its Asia Pacific director before he took office in July 2012.
Leung’s office denied any wrongdoing. DTZ was not immediately available to comment, while UGL said it was under no obligation to disclose the agreement.
As part of the contract Leung signed with UGL in December 2011, he agreed to promote the “UGL Group and the DTZ Group as UGL may reasonably require, including but not limited to acting as a referee and adviser from time to time”, according to a copy seen by Reuters.
Leung’s office said in a statement that such assistance would only be provided in the event that he failed to be elected Hong Kong leader, and providing that such assistance would not create any conflict of interest.
Hong Kong called off talks with protesting students on Thursday, dealing a heavy blow to attempts to defuse a political crisis that has seen tens of thousands take to the streets to demand free elections and calling for leader Leung Chun-ying to resign.
The government’s decision came as democratic lawmakers demanded anti-graft officers investigate a $6.4 million business payout to Leung while in office, as political fallout grows from the mass protests in the Chinese-controlled city.
It was not immediately clear what the students’ next move would be – whether to ramp up the street protests or make plans to fight another day. They were to hold a news conference later in the evening.
“Students’ call for an expansion of an uncooperative movement has shaken the trust of the basis of our talks and it will be impossible to have a constructive dialogue,” Chief Secretary Carrie Lam said on the eve of the planned dialogue.
She blamed the pull-out on students’ unswerving demands for universal suffrage, which she said was not in accordance with the Asian financial center’s mini-constitution, the Basic Law, and what she described as their illegal occupation of parts of the city.
Hours earlier, Hong Kong’s Justice Department handed to prosecutors the investigation of the business payout to Leung by an Australian engineering company.
Part of the brief includes “considering and deciding whether prosecution action is warranted” against Leung, who has refused to stand down in recent weeks over protesters’ calls for Beijing to keep its promise of universal suffrage.
The department said its decision was aimed at avoiding “any possible perception of bias, partiality or improper influence”.
The campaign against the former property surveyor and son of a policeman has extended from the streets to the city’s legislative chambers where democrats have threatened to veto major decisions and potentially cause policy paralysis.
Australia’s Fairfax Media reported this week that engineering firm UGL Ltd paid Leung a total of $6.4 million in 2012 and 2013 in relation to its acquisition of DTZ Holdings, a property consultant that employed Leung as its Asia Pacific director before he took office in July 2012.
Leung’s office denied any wrongdoing. DTZ was not immediately available to comment, while UGL said it was under no obligation to disclose the agreement.
As part of the contract Leung signed with UGL in December 2011, he agreed to promote the “UGL Group and the DTZ Group as UGL may reasonably require, including but not limited to acting as a referee and adviser from time to time”, according to a copy seen by Reuters.
Leung’s office said in a statement that such assistance would only be provided in the event that he failed to be elected Hong Kong leader, and providing that such assistance would not create any conflict of interest.
