Ex-Hong Kong exchange official charged with IPO-related bribery (updated)
25/03/2020 08:34
(Add comment from Hong Kong government)
HONG KONG, March 25 (Reuters) - Hong Kong's anti-corruption
unit has charged a former exchange official with bribery and
misconduct over a 2017 IPO application by thread manufacturer
Shen You Holdings 8377.HK .
The Independent Commission Against Corruption (ICAC) alleged
in a statement on Wednesday that Eugene Yeoh took cash payments
from a consultant as an inducement to view Shen You Holding's
Hong Kong listing application favourably.
Yeoh was joint-head of the IPO vetting team at Hong Kong
Exchanges and Clearing 0388.HK at the time, responsible for
making sure applications were compliant with listing rules and
endorsing recommendations to the bourse's listing committees
which have the final say. Yeoh left the bourse in May 2019.
Yeoh did not immediately respond to a LinkedIn message
seeking comment and Reuters was not immediately able to obtain
contact information for his lawyer.
A spokesman for the Hong Kong exchange said it "has
cooperated fully with the ICAC in the conduct of its
investigation of a former employee and will continue to do so."
A government spokesman said the integrity and credibility of
the bourse's IPO vetting process was of utmost importance to
Hong Kong's reputation and it was very concerned by the case.
Shen You Holdings, which has a market value of about $5.2
million, did not immediately respond to an email seeking
comment. Reuters was not immediately able to find a phone number
for the company.
ICAC alleged in a statement that Yeoh concealed or failed to
disclose the transfer of HK $9.15 million to his wife from IPO
consultant Richard Lum. The statement said two payments of HK$2
million were related to Shen You's IPO.
Lum, who was charged with offering an advantage to a public
servant, could not be immediately reached for comment. Reuters
could not immediately contact his lawyer.
The anti-corruption unit said in June it had searched the
offices of two firms that sponsor, or lead, IPOs and two listed
companies, and had made three arrests. urn:newsml:reuters.com:*:nL4N23Y0GS
At that time, Hong Kong's Securities and Futures Commission
said it was reviewing how the exchange dealt with listings.
(Reporting by Alun John; Additional reporting by Donny Kwok;
Editing by Edwina Gibbs and Alexander Smith)
((Alun.John@thomsonreuters.com; +852-28415827;))