Kwok brothers claim they did nothing wrong

HONG KONG’S billionaire Kwok brothers, whose arrest last week on suspicion of corruption has gripped the financial hub, said yesterday they had done nothing wrong and insisted it was business as usual at the family conglomerate they jointly run.

The investigation into Raymond and Thomas Kwok, co-chairmen of Sun Hung Kai Properties, is the biggest case launched by Hong Kong’s Independent Commission Against Corruption since it was set up in 1974 to root out graft.

“I can tell you definitely that I personally did not do anything wrong and I believe that Thomas Kwok has done nothing wrong,” Raymond Kwok told reporters as the pair faced the media at the company’s headquarters in Hong Kong’s busy Wan Chai district, in their first public appearance since their arrests.

The brothers, worth $18.3 billion according to Forbes magazine, said the investigation would not affect business decisions at Asia’s largest developer, and that sales and development plans would go ahead as scheduled.

The company owns some of the former British colony’s largest properties, including its tallest building, the International Commerce Centre that houses Morgan Stanley and the Ritz Carlton.

The arrests last Thursday of the brothers, along with Rafael Hui, a former No 2 official in the Hong Kong government, came days after the election of Beijing-loyalist Leung Chun-ying as the city’s next leader. He has pledged to address soaring property prices.

The Hong Kong public has been increasingly aggrieved at the perceived cosy ties between government and big business, and some observers have interpreted the arrests as a first move in an attempt to rein in the power of the monied elite. The brothers and Mr Hui were released on bail and have not been charged with any offence.

But last week’s event dented investor confidence and nearly $5 billion in Sun Hung Kai’s market value was wiped out when trading in the company’s shares resumed on Friday. Yesterday, the stock rose about 2 per cent to around 96.25 Hong Kong dollars, still well below HK$111.10 when the company halted trading in its shares last Thursday. The benchmark Hong Kong share index closed up 1.3 per cent. – (Reuters)