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12 July 1995 5255 OFFICIAL RECORD of PROCEEDINGS HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 5255 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 12 July 1995 The Council met at half-past Two o'clock PRESENT THE PRESIDENT THE HONOURABLE SIR JOHN SWAINE, C.B.E., LL.D., Q.C., J.P. THE CHIEF SECRETARY THE HONOURABLE MRS ANSON CHAN, C.B.E., J.P. THE FINANCIAL SECRETARY THE HONOURABLE SIR NATHANIEL WILLIAM HAMISH MACLEOD, K.B.E., J.P. THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P. 5256 HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN, O.B.E., J.P. THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE MARVIN CHEUNG KIN-TUNG, O.B.E., J.P. THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG REV THE HONOURABLE FUNG CHI-WOOD THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, O.B.E., J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 5257 THE HONOURABLE MAN SAI-CHEONG THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE ROGER LUK KOON-HOO THE HONOURABLE ANNA WU HUNG-YUK THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P. THE HONOURABLE ALFRED TSO SHIU-WAI THE HONOURABLE LEE CHEUK-YAN ABSENT THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. IN ATTENDANCE MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER MR MICHAEL SUEN MING-YEUNG, C.B.E., J.P. SECRETARY FOR HOME AFFAIRS MR RONALD JAMES BLAKE, J.P. SECRETARY FOR WORKS 5258 HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 MR JAMES SO YIU-CHO, O.B.E., J.P. SECRETARY FOR RECREATION AND CULTURE THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR THE CIVIL SERVICE MR HAIDER HATIM TYEBJEE BARMA, I.S.O., J.P. SECRETARY FOR TRANSPORT MR DONALD TSANG YAM-KUEN, O.B.E., J.P. SECRETARY FOR THE TREASURY MR NICHOLAS NG WING-FUI, J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR FINANCIAL SERVICES MR DOMINIC WONG SHING-WAH, O.B.E.,J.P. SECRETARY FOR HOUSING MRS KATHERINE FOK LO SHIU-CHING, O.B.E., J.P. SECRETARY FORHEALTH AND WELFARE MR BOWEN LEUNG PO-WING, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MRS ELIZABETH MARGARET BOSHER, J.P. SECRETARY FOR ECONOMIC SERVICES MRS REGINA IP LAU SUK-YEE, J.P. SECRETARY FOR TRADE AND INDUSTRY MR KENNETH JOSEPH WOODHOUSE, J.P. SECRETARY FOR SECURITY THE DEPUTY SECRETARY GENERAL MR LAW KAM-SANG HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 5259 PAPERS The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Schedule of Routes (China Motor Bus Company) Order 1995 .................................................................................. 310/95 Swimming Pools (Regional Council) (Amendment) (No.2) Bylaw 1995...................................................................... 311/95 Employees Retraining Ordinance (Amendment of Schedule 4) Notice 1995 ............................................................. 312/95 Builders' Lifts and Tower Working Platforms (Safety) Ordinance (23 of 1995) (Commencement) Notice 1995................................................................................. 313/95 Motor Vehicles Insurance (Third Party Risks) (Amendment) Ordinance 1995 (46 of 1995) (Commencement) Notice 1995.................................................... 314/95 Employees' Compensation (Amendment) (No.2) Ordinance 1995 (47 of 1995) (Commencement) Notice 1995................................................................................. 315/95 Official Languages (Authentic Chinese Text) (Crimes Ordinance) Order........................................................... (C)49/95 Sessional Papers 1994-95 No.103 — Kadoorie Agricultural Aid Loan Fund Report for the period 1 April 1994 to 31 March 1995 No.104 — J.E. Joseph Trust Fund Report for the period 1 April 1994 to 31 March 1995 No.105 — Report of the Legislative Council Panel on Administration of Justice and Legal Services Concerning the Briefing Out Costs in the Bumiputra Malaysia Finance Limited Case June 1995 5260 HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 No.106 — Statement of Accounts for the Customs and Excise Service Welfare Fund for the year 1994-95 No.107 — Pneumoconiosis Compensation Fund Board 1994 Annual Report No.108 — Hong Kong Provisional Airport Authority Annual Report 1994-95 No.109 — Report on the Administration of the Immigration Service Welfare Fund from 1 April 1994 to 31 March 1995 prepared by the Director of Immigration No.110 — Report of the Subcommittee on Proposed Legislation on Wong Wai Tsak Tong Legislative Council Panel on Planning, Lands and Works March 1995 ADDRESSES Report of the Legislative Council Panel on Administration of Justice and Legal Services Concerning the Briefing Out Costs in the Bumiputra Malaysia Finance Limited Case June 1995 MR SIMON IP: Mr President, on behalf of the Legislative Council Panel on Administration of Justice and Legal Services, I have the honour to table the Panel's report on the study of the briefing out costs in the Bumiputra Malaysia Finance Limited (BMFL) case. The study was initiated as a result of a revelation in November last year of a substantial amount of fees paid to a former legal officer of the Legal Department. Since then, the Panel has held eight meetings, including six public meetings, to look into the background of the case. This report sets out the circumstances surrounding the briefing out and the Panel's views on the responsibility of the persons concerned. The Panel has also made a series of recommendations on how the systems in the Department could be tightened up to improve the management of public funds. Mr President, it is not my intention this afternoon to go over all the conclusions and recommendations of the Panel. However, I think it would be appropriate for me to highlight some of the Panel's findings and the main recommendations. HONG KONG LEGISLATIVE COUNCIL — 12 July 1995 5261 The Panel does recognize the need for briefing out by the Legal Department to private practitioners. Nevertheless, the manner in which the BMFL case had been briefed out has cast serious doubts on the systems then in place in the Department. There was little concern for accountability in the spending of public money, no checks and balances in the decision-making process, a lack of budgetary control and review mechanisms, and an overall cavalier attitude towards financial management. The Panel finds it hard to accept that such a significant amount of public money should have been spent in such a manner, and that this should have taken place in a government department where the administration of justice is its prime concern. The Panel is concerned with the adverse effect which the handling of the case would have on the morale of the 900 staff members of the Department and on the public image of the Department. The Panel concluded that both the Attorney General and the former Director of Public Prosecutions should share responsibility for the failure to contain the briefing out costs on this case and the failure to exercise budgetary control over the use of public money. The Panel has made a number of recommendations in major areas where improvements are needed. The Panel believes that the Administration should take concrete steps to ensure that the Department is put under stronger leadership and more effective and competent management. This should then be reinforced by injecting into the departmental management a stronger sense of cost and accountability. The Chamber Manager's role in the control and briefing out vote also requires strengthening. In addition, the Attonery General should arrange for all briefed-out cases to be reviewed periodically to ensure better cost control. He should keep the Panel informed about the effectiveness of the improvement measures introduced earlier this year. I urge the Administration to expedite the implementation of the Panel's recommendations. Mr President, the Legal Department has recently set up two working parties, one to review the briefing out system and the other to examine the decision-making process in the Prosecutions Division pursuant to the motion debate held in this Council on 7 June 1995.
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