Uneasy Partners: The Conflict Between Public Interest and Private Profit in Hong Kong by Leo F. Goodstadt

Author:Leo F. Goodstadt [Goodstadt, Leo F.]
Language: eng
Format: epub
Tags: Business & Money, Economics, Economic Conditions, History, Asia, China, Politics & Social Sciences, Politics & Government, Specific Topics, Political Economy, Political Science, Hong Kong
ISBN: 9789882205062
Amazon: B003TU2KLA
Publisher: Hong Kong University Press
Published: 2009-01-08T16:00:00+00:00

Indeed, it can be argued that the public became too complacent about the government’s total commitment to honesty and the ICAC’s ability to monitor official integrity. For example, there was little reaction to scandals about judicial appointments and bizarre decisions in major commercial and corruption trials during the final decade of British rule.82 There was even less response from the public to complaints about potential conflicts of interest as senior civil servants switched to the private sector.83 Similarly, Sir Piers Jacobs, Financial Secretary from 1986 to 1991, was imprudent and indiscreet in his social relations with cronies among the elite, but he never attracted the sort of hostile gossip that Grantham had done as Governor. Corruption had ceased to be a threat to the governability of Hong Kong, and even serious incidents of dishonesty were perceived as individual aberrations that did not impugn the overall high standards of integrity within the public sector.

The ICAC’s standing with the public was of special importance after 1997 when the new administration’s credibility fell below that enjoyed by its colonial predecessor.84 This trust was not misplaced because the ICAC seemed more successful in handling post-1997 political pressures than other law-enforcement bodies, which stumbled badly in high-profile cases. For example, after an ICAC investigation into the Hong Kong Standard and the fraudulent exaggeration of its circulation, the Department of Justice declined to prosecute a prominent business personality, citing potential damage to the economy. This decision led to allegations of political influence and met with harsh public criticism, particularly from the legal profession. Ironically, in defending itself, the Department of Justice invoked a 1987 colonial precedent: the decision on the same economic grounds not to prosecute businessman Alan Bond, who was later imprisoned by the Australian courts.85 The police force was also accused of bowing to political sensitivities in its handling of the Su Zhi-yi extortion case. This scandal involved Mainland security personnel who entered Hong Kong “on vacation”. They could not be located subsequently when the Hong Kong made enquiries of the Guangdong Public Security Bureau, which led to complaints that the Hong Kong police had not been robust enough in pursuing this case.86 By contrast, when the ICAC encountered attempts by Mainland security officers to use unlawful interrogation methods to obtain evidence in Hong Kong, its insistence on the rule of law was determined and well-publicized.87 It stumbled seriously only once when in 2004, it raided journalists’ homes and seven newspaper offices while investigating offences related to the witness protection programme. This operation provoked media outrage and judicial criticism.88

It was not surprising that the ICAC became far and away the most respected organization in Hong Kong. It had a public confidence rating of 86 percent in 1999, well above that of any other local institution.89 The legitimacy of the Special Administrative Region government was shored up by a continuing community belief in the overall integrity of the administration, despite the fears of cronyism discussed in Chapter VI, “Government and Business — A Rewarding Alliance”.90

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