Identifier
Created
Classification
Origin
07HONGKONG2143
2007-08-16 09:17:00
CONFIDENTIAL
Consulate Hong Kong
Cable title:  

MACAU: CHARGES OF CORRUPTION LEVIED AGAINST CHIEF

Tags:  PGOV ECON EFIN ELAB PREL PINR HK MC 
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VZCZCXRO1782
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #2143/01 2280917
ZNY CCCCC ZZH
P 160917Z AUG 07
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 2620
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 002143 

SIPDIS

SIPDIS

NSC FOR DENNIS WILDER
DEPARTMENT FOR EAP/CM, DRL

E.O. 12958: DECL: 08/16/2032
TAGS: PGOV ECON EFIN ELAB PREL PINR HK MC
SUBJECT: MACAU: CHARGES OF CORRUPTION LEVIED AGAINST CHIEF
EXECUTIVE

REF: A. A. HONG KONG 000193

B. B. HONG KONG 001203

C. C. HONG KONG 001675

Classified By: Acting E/P Section Chief Jeff Zaiser; Reasons 1.4 (b, d)

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 002143

SIPDIS

SIPDIS

NSC FOR DENNIS WILDER
DEPARTMENT FOR EAP/CM, DRL

E.O. 12958: DECL: 08/16/2032
TAGS: PGOV ECON EFIN ELAB PREL PINR HK MC
SUBJECT: MACAU: CHARGES OF CORRUPTION LEVIED AGAINST CHIEF
EXECUTIVE

REF: A. A. HONG KONG 000193

B. B. HONG KONG 001203

C. C. HONG KONG 001675

Classified By: Acting E/P Section Chief Jeff Zaiser; Reasons 1.4 (b, d)


1. (SBU) Summary: According to the August 13 "South China
Morning Post" newspaper, Macau Chief Executive (CE) Edmund Ho
and his brothers collectively own more than US$12 million
worth of shares in Many Town Company Limited, which in turn
is a shareholder in the gambling and property businesses of
Macau casino mogul Stanley Ho. Failure to disclose such
holdings would constitute a violation of Macau law, and the
Macau Government Information Bureau has stated that CE Ho has
complied with the law. Macau legislators Antonio Ng and Jose
Coutinho have challenged CE Ho,s statements and publicly
pressured him for a more complete disclosure. On August 15,
the CE Office released a statement on the Macau government
website documenting that CE Ho, in response to media coverage
and public pressure, had submitted a copy of the share
transfer contract signed with his brother and related
documents to the Court of Final Appeal. CE Ho also
reiterated his commitment to integrity for all Macau
officials. There have been no further calls for an
investigation into the matter. End summary.


2. (C) Comment: The hypersensitivity of the press and some
legislators toward this story, following a perceived
hesitation in response from CE Ho, serves as a reminder of
deep public concern over clean governance, especially in the
aftermath of the Ao Man Long corruption scandal (reftels).
With the Macau government flush with cash from gaming
revenues and also under some pressure for not adequately
addressing social welfare concerns, the public will continue
to show little patience for any lack of transparency and
accountability by government officials. Furthermore, the

extent to which these issues remain on the agenda for the
planned October 1 demonstration, billed to be one of the
largest in size and scope for Macau in recent years, will
indicate the measure of public and legislative sentiment over
revising relevant laws (in particular, Macau's Property
Declaration Law of 2003). On the other hand, Ho undoubtedly
has acquired political enemies during his long, high-profile
business and public service career, one of whom may have
planted or leaked this story to the press. End comment.


3. (SBU) Hong Kong's "South China Morning Post" (SCMP)
reported August 13 that Macau CE Edmund Ho and his brothers
collectively own more than US$12 million in Many Town Company
Limited, which in turn is invested in Sociedade De Turismo e
Diversoes de Macau (STDM) and Shun Tak Holdings, both owned
by property tycoon and Macau casino mogul Stanley Ho. CE Ho
and his brothers reportedly inherited their father's shares
after his death in 1983. (Note: Their father, Ho Yin,
founder of Macau's Tai Fung Bank, rose to be one of the most
influential figures in Macau from 1950 to the early 1980s,
including service as chairman of the Macau Chinese General
Chamber of Commerce. Ho Yin was well-connected with
Portuguese governors in the enclave, as well as prominent
officials in Beijing, including Mao Zedong. He was one of
the first two residents of the enclave appointed to the
National People's Congress Standing Committee. End note.)
According to the SCMP report, Edmund Ho's alleged failure to
disclose his holdings in Many Town would constitute a
violation of Macau law.


4. (SBU) The Macau Government Information Bureau responded
to a letter from the SCMP by stating (in lightly edited
form): "the Chief Executive, Mr. Edmund Ho Hau Wah,
inherited a certain number of shares in Many Town from his
father, Mr. Ho Yin...and declared his assets in accordance
with the Basic Law when he took office as the Chief Executive
of the Macau Special Administrative Region in 1999..."
(Note: Macau's Basic Law, Article 49, stipulates that the
Chief Executive of the Macau SAR shall not engage in any
activities for his or her personal gains. The Chief
Executive, on assuming office, shall declare his or her
assets to the President of the Court of Final Appeal." End
note.)


5. (SBU) Separately, Stanley Ho's law firm, Herbert Smith,
reportedly said: "To the best of our client's knowledge and
belief, Mr. Edmund Ho does not currently hold any direct or
indirect interests in STDM." Although CE Ho said he had
transferred his shares to his brother, Ho Hau-wing, in 1995,
Many Town's shareholder registry does not reflect the
transfer. Legislators Antonio Ng and Jose Coutinho
challenged CE Ho's statements and continue to publicly

HONG KONG 00002143 002 OF 002


pressure the CE for a more complete disclosure. The
outspoken legislators have also suggested that the issue of
government transparency should be discussed in the
Legislative Assembly.


6. (SBU) On August 15, the Office of the Chief Executive
released a statement on the Macau government website that CE
Ho, in response to media coverage and public pressure, had
submitted a copy of the share transfer contract signed with
his brother and related documents to the Court of Final
Appeal. The statement claimed that CE Ho was still listed
with the registry authority in Hong Kong because he had been
one of the administrators of his father's estate. CE Ho
reiterated his commitment to integrity for all Macau
officials, and there have been no further calls for an
investigation into the matter.
Marut