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Hong Kong tycoons bribed former official: prosecution
by Staff Writers
Hong Kong (AFP) June 05, 2014


China's richest man buys star Madrid skyscraper
Madrid (AFP) June 05, 2014 - China's richest man Wang Jianlin has bought a historic Madrid skyscraper which has stood empty for years from Spain's biggest bank Santander for 265 million euros ($360 million), the bank said Thursday.

The 25-story tower of offices and apartments, completed in 1953 under the dictatorship of General Francisco Franco, dominates one end of the Plaza de Espana square in western Madrid.

It has stood empty since 2006, a symbol of the 2008 real estate collapse that thrust Spain into a double recession that wiped out millions of jobs.

Spanish officials had expressed hope that the sale of the building would breathe new life into the neighbourhood, a key part of the city.

Santander said it sold the white and red brick Edificio Espana to Renville Invest, a subsidiary of Chinese conglomerate Dalian Wanda which is chaired by Wang.

The bank paid 389 million euros for the red and white brick building in 2007, just before Spain's decade-long building boom went bust, but in a statement it said the impact of the sale on its results and capital would be "immaterial".

Wang, formerly a senior member of China's ruling Communist Party, was ranked the richest man in China and 26th richest in the world, with personal wealth estimated at $14 billion, business magazine Forbes reported in February.

In 2012 he bought US cinema chain AMC Entertainment.

A prosecutor told a corruption trial Thursday that Hong Kong property tycoons Thomas and Raymond Kwok bribed a high-ranking official to be their "eyes and ears" in the government.

The billionaire brothers, who jointly chair development giant Sun Hung Kai Properties, were arrested along with former chief secretary Rafael Hui in a major swoop by graft investigators two years ago.

David Perry, opening for the prosecution, said the Kwoks, aged 62 and 60, made "secret payments" to Hui, who held the second-highest position in Hong Kong's government from June 2005 to June 2007.

Hui, who was later on the city's top advisory body the Executive Council, is accused of misconduct in office involving bribes amounting to HK$34 million ($4.38 million).

Perry said the payments had been made through a series of "complicated" transactions involving middlemen.

One payment, amounting to HK$8.5 million, was made to Hui in the four days leading up to his appointment as the city's Chief Secretary for Administration in 2005, Perry said.

Another payment, totalling about HK$11 million, was transferred in 2007 in small segments through a series of transactions, involving 10 accounts and an offshore company in Singapore, Perry added.

"Why would such successful businessmen pay millions of dollars in that way to a man to be appointed to office of chief secretary and who was a member of executive council?" Perry asked.

"It was a bribe," he told the nine-member jury panel.

Hui also faces charges over the rent-free use of luxury apartments and acceptance of unsecured loans.

Other defendants in the blockbuster trial are Sun Hung Kai director Thomas Chan, and Francis Kwan, the former non-executive director of investment company New Environmental Energy Holdings.

All five have pleaded not guilty.

Perry said Hui had given Hong Kong an impression that he was an "independent and impartial" public servant.

"But he was not," he added, alleging the payments given to Hui were aimed at making him the Kwok's "eyes and ears" in the government to their benefit.

The case has shocked Hong Kong, where Sun Hung Kai is the biggest property developer by market capitalisation and owns some of the city's most recognisable real estate including the 118-floor International Commerce Centre.

The Kwoks were arrested in March 2012 and the High Court trial is expected to last four months.

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