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Thursday, August 13, 2020, 10:59
Security law affirms rule of law with Lai's arrest
By Tony Kwok
Thursday, August 13, 2020, 10:59 By Tony Kwok

When the Independent Commission Against Corruption was established on Feb 15, 1974, many people in Hong Kong were skeptical of the organization and its commitment to eradicate the then-endemic corruption. Some corrupt officials had no intention to give up their lucrative corrupt operations, believing that the ICAC might just be a toothless tiger. It was not until a few months later, when Peter Godber, the chief police superintendent who had absconded to the United Kingdom while under police investigation for corruption, was re-arrested in London that the public began to believe that the ICAC meant business, and the widespread and syndicated corruption abruptly ceased operations.

There could be a similar effect with the arrest of Jimmy Lai Chee-ying, as well as nine others, on Monday in a massive raid against his Apple Daily media operations on suspicion of breaching the National Security Law and other offenses. The police operation demonstrated the authorities’ determination to safeguard national security. Lai had long been regarded by many as the de facto head and mastermind of various local subversive elements attempting to destabilize Hong Kong. Records show he has played three pivotal roles. Firstly, as a financier of the anti-China political parties and various political activist groups. Secondly, using Apple Daily to incite hatred of the Chinese mainland and participation in unlawful rallies which mostly ended in violence and property destruction. Thirdly, colluding with foreign governments, notably the United States, in imposing sanctions against China and Hong Kong. 

It is significant to note that Mark Simon, Lai’s right-hand man, realizing his culpability, had returned to the US one step ahead of the raid and the arrest of Lai and his senior staff. Occupying a key position in a major Chinese media group yet with no media work experience, he was obviously hired more for his background as a former CIA operative. He is most likely the linkman between Lai and the CIA, as well as the Five Eyes intelligence network, which has a base in Hong Kong. He is now wanted by police and if he fails to return to the city to defend himself, he will simply confirm his guilt.

It is also important to note that the raid did not violate the National Security Law’s absence of retroactive effect. Lai’s arrest was for his criminal acts after the enactment of the new law. It shows that he will not be deterred by it in his determination to destabilize Hong Kong. If he is eventually imprisoned, he has only himself to blame since he apparently has rejected a last chance to turn over a new leaf!

Based on the ICAC experience, such a major search-and-arrest operation could be the beginning of a protracted investigation. The 25 boxes of seized evidence need to be thoroughly examined; the group’s financial transactions will require a sizable forensic accounting team to unravel. The financial investigation should be linked to the recent police discovery of a multimillion-dollar money laundering case using radical students as fronts. The investigation should extend to the entire local subversive syndicate headed by Lai, which includes elected politicians, university professors, teachers, and media practitioners, who could be on Lai’s payroll. In 2014, the ICAC investigated the allegation that Lai, through Simon, had paid HK$40 million ($5.16 million) to politicians including Martin Lee Chu-ming, Anson Chan Fang On-sang, Cardinal Joseph Zen Ze-kiun and several legislative councilors. But the investigation did not lead to any successful prosecutions. The ICAC should reopen those cases now that potential evidence could be among the materials seized by police in the raid.

A number of key employees of Lai were arrested in the raid and they might play pivotal roles in his conviction if they can be turned into prosecution witnesses. By making full use of Article 33 of the National Security Law, police can offer them immunity if they can give a truthful account of their committed offenses, “report on the offense committed by other persons, or provide material information which assists in solving other criminal cases”. Their families should persuade them to save themselves instead of remaining loyal to a dubious political agenda which hurts the Hong Kong economy and brings suffering to its people. 

An inexplicable fluctuation marked the shares of Next Digital, Lai’s media empire of which he holds 70 percent of the shares, on the day of his arrest. In the morning, the value dropped 17 percent to a record low of 7.5 Hong Kong cents. This is understandable as the police investigation would most likely affect its business operation. But in the afternoon, the share was pushed up sharply and closed at 25.5 Hong Kong cents, an increase of 340 percent from the morning low, and there was a huge surge of transactions amounting to HK$393 million. Investment experts on the radio were unable to explain the strange phenomenon. But it was noted that the share prices of Next Digital were often subject to unexplainable fluctuations during the social unrest period and it was rumored to be a channel for siphoning money to the group from unknown sources. The Securities and Futures Commission should investigate the matter and work with the police to determine the source of the fund infusion. In the meantime, police should apply for a court order to freeze Lai’s assets in Hong Kong and overseas.

Some anti-China media condemned the raid against Next Media as a first in local history targeting a media organization. They were wrong! In 2004, in investigating a case of perverting the course of justice, the ICAC conducted searches of seven media firms in Hong Kong, including Apple Daily. One media organization subsequently complained to the court, but the Court of Appeal upheld the legitimacy of the search. It should be noted that on this occasion, the search warrant was issued by the court, although the police can issue their own search warrant in terms of the National Security Law. The media should learn that they have no immunity for committing criminal offenses. Regrettably, many media outlets accorded negative and biased coverage to the police raid, in particular Radio Television Hong Kong, the city’s principal media outlet. It is time for the news department of RTHK to be disbanded and replaced by the Information Services Department!

When the National Security Law was introduced, local and overseas critics made a big play of the establishment of the Office for Safeguarding National Security of the Central People’s Government in the Hong Kong Special Administrative Region, and claimed that they could arrest Hong Kong people at will and bring them to the mainland for trial. This high-profile case disproved all those doomsday predictions. Furthermore, it was conducted entirely by the Hong Kong police, and it will be tried in Hong Kong.

This operation involved multiple targets and hundreds of police officers. It took time and meticulous planning. It is absurd to suggest that this was in revenge against the US sanctions announced three days earlier on Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor and 10 other incumbent or former officials. It is, nonetheless, an appropriate response to the sanctions. It would be even better if the investigation could uncover the Five Eyes network in Hong Kong and catch some Western spies.

It is also important to note that the raid did not violate the National Security Law’s absence of retroactive effect. Lai’s arrest was for his criminal acts after the enactment of the new law. It shows that he will not be deterred by it in his determination to destabilize Hong Kong. If he is eventually imprisoned, he has only himself to blame since he apparently has rejected a last chance to turn over a new leaf!

The author is an adjunct professor of HKU Space and council member of the Chinese Association of Hong Kong and Macao Studies. He is the former head of operations of the ICAC.

The views do not necessarily reflect those of China Daily. 


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