Lawmaker Yiu Si-wing was director of one of several companies set up by Panama Papers law firm
STUART LAU AND GARY CHEUNG
UPDATED : Wednesday, 20 April, 2016, 11:45pm
Sun Hung Kai Properties chairman Raymond Kwok Ping-luen. Photo: Dickson Lee
State-owned giant China Travel Service’s Hong Kong branch set up a series of companies in the British Virgin Islands through the Panama law firm at the centre of a mass leak of documents, a South China Morning Post investigation has discovered.
The practice started in 1993, a year after China Travel International Investment went public in the city, according to Mossack Fonseca documents – known as the Panama Papers – leaked to the International Consortium of Investigative Journalists.
At least five companies were set up, apparently with a view to extending the company’s financial arm, with names including Well Extend Investment, Well Channel Investment and Well Finance Management.
But one of these BVI companies is of particular interest.
Well Cosmos Holdings, which is controlled by Allied Well, formerly had Yiu Si-wing as a director until a day before the then newly elected tourism lawmaker submitted his declaration form to the Legislative Council in 2012.
He did not mention his expired directorship in the BVI firm in the Legco form. Commenting on his role, Yiu, a director of China Travel Service, told thePost he had already forgotten about it.
Lawmaker Yiu Si-wing, who is a director of China Travel Service
“There are so many directorships of this kind,” he said. “The company set up many overseas companies or subsidiaries, so I did not pay serious attention.”
According to the documents obtained by the Post,Sun Hung Kai Properties chairman Raymond Kwok Ping-luen and his brothers, Thomas Kwok Ping-kwong and Walter Kwok Ping-sheung, are current and former directors of more than 20 offshore companies. Thomas is presently serving a five-year jail term for corruption.
Mossack Fonseca helped set up those companies, including Tyson Development Corp, since the late 1980s. Raymond Kwok and his elder brothers declared their nationality as “British” in the registers of directors of some companies.
The nature of most companies’ business is not stated in their records.
A spokesman for Sun Hung Kai Properties said Tyson Development was a wholly owned subsidiary of Sun Hung Kai Properties Ltd that has been used in connection with its property development business in Hong Kong.
“The use of offshore companies is a common practice for listed companies in Hong Kong. Sun Hung Kai Properties Ltd has always acted in compliance with the relevant laws and regulations regarding these companies,” the spokesman added. “Regarding nationality of our directors, we are not in a position to comment.”
In January 2014, Walter Kwok resigned as a SHKP director after reaching an agreement with his family to receive the same entitlement as his brothers and their families in company shares and family assets.
http://m.scmp.com/news/hong-kong/politics/article/1937436/china-travel-giants-hong-kong-branch-set-companies-british
