The arrest of billionaire siblings Raymond and Thomas Kwok (no relation to the Shangri-La Group’s Robert Kuok) on suspicions of corruption and bribery has sent the Hong Kong property sector in great shock. The Kwok family owns Sun Hung Kai Properties (SHKP), the biggest real estate developer in Asia (whose projects include the three tallest buildings in Hong Kong: the Central Plaza, the International Commerce Center and the International Finance Center), virtually shaping Hong Kong’s skyline. Over the weekend, SHKP share prices plunged by $5 billion, sending shivers among the company’s shareholders.
The arrest of Thomas and Raymond by HK’s Independent Commission Against Corruption put media on a feeding frenzy with this latest “episode” in the continuing Kwok family saga that has all the ingredients necessary for a high-powered television series. SHKP was founded by Kwok Tak-Seng who immigrated to Hong Kong after the Second World War and turned the company into a highly profitable property developer, which soon became the biggest in the Chinese territory.
When the Kwok patriarch died in 1990, Walter took over. He was kidnapped in 1997 and was made to strip down almost naked, held for a week inside a wooden box with tiny air holes before getting released after his family paid a HK$ 600 million ransom. The kidnapper – nicknamed Big Spender – was subsequently caught and executed by a firing squad. But Walter’s leadership was soon challenged by his younger brothers, who said he was suffering from mental illness. This was followed by a bitter boardroom feud which saw the Kwok matriarch taking control of the company – siding with her younger sons who soon took over.
The Kwok fortune is estimated at over $18.3 billion, and their interests span hotels and property management as well as information technology and telecommunications, among others. SHKP played a major role in developing Vancouver’s Harbour Coal through its subsidiary Aspac Developments Ltd., which is currently developing a luxury riverfront community near the Richmond Olympic skating oval in Metro Vancouver. Over the years, the SHKP has enjoyed a comparatively positive image, with a cleaner corporate structure compared to other groups that also have multiple business interests.
But compounding the Kwoks’ arrest is the implication of former high-ranking official Rafael Hui on allegations of corruption and “misconduct in public office,” with talks that he had allegedly colluded with “big business.” Although specific details of the charges have not been made available at this writing, analysts say the scandal could tarnish the integrity of the Chinese territory. Giving color to the business scandal are conspiracy theories alleging that newly elected HK chief executive CY Leung is out for revenge against those who went against him in the recently concluded elections. Raymond and Thomas were said to be supporters of Leung’s rival Henry Tang, with Hui even acting as Tang’s campaign manager in the early stages. The Kwok brothers have been released from detention and have reported back to work, but speculations are rife that the recent development could give rise to another bitter corporate boardroom battle.
In any case, supporters of the unpopular Leung say the new chief executive – also described as a “graft buster” – means business, and that the clock is ticking against the corrupt in business and government.
Americans fear abuse of cell phone tracking
No one argues the contribution of technology in law enforcement, with smart phones now armed with the capability to take photos of thieves as well as email them to cell phone owners, or GPS tracking devices that can pinpoint the location of carjacked vehicles. In the United States, local police officials are also making wide use of cell phones as surveillance gadgets to locate a suspect, trace phone calls and text messages to solve crimes especially those that have to do with kidnapping, drugs and murder. According to a law enforcement official, cell phones are almost like “biographers” that chronicle a suspect’s activities on a day-to-day basis, giving clues on contacts, destinations and other details that can help in cracking a crime.
As a matter of fact, a number of wireless carriers are making a lot of business by providing police with “surveillance” and other tracking services. In some states like Arizona, the police departments don’t even bother to solicit the services of cell phone companies since they buy their own tracking equipment, figuring they can do the work more efficiently (and less expensively) if they do not have to go through a conduit.
However, civil liberties groups are assailing the practice, claiming these could infringe on an individual’s right to privacy, especially if the tracking activities are done even in the absence of an emergency situation or worse, without the necessary court orders or warrants, which could potentially lead to abuses by unscrupulous police officials. Aside from cell phone calls and text messages, posts in social networking sites such as Facebook are also being used as evidence in more and more cases from divorce to murder – proof that technological advances have the capability to outpace outdated law enforcement techniques.
Spy tidbit
Amidst warnings and fears of massive blackouts that could hit Luzon and the Visayas in the next couple of years, Semirara Mining Corporation expects its power generation capacity to improve with the full completion of the rehabilitation of the 600-megawatt Calaca coal-fired power plant in Batangas. According to analysts, Semirara’s net income is projected to grow by as much as 15 percent from last year’s P6 billion even as coal output remains flat due to higher profits from its coal subsidiary, SEM-Calaca Power Corp.
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