Civil service chief faults Tsang for accepting gifts

But Denise Yue, who played role in Leung Chin-man’s job fiasco, says anti-graft rules leave boss in the clear

The outgoing secretary for the civil service yesterday called Chief Executive Donald Tsang Yam-kuen’s acceptance of gifts from tycoons “misconduct”, but said her boss had not broken any rules because none applied to him.

Denise Yue Chung-yee’s remarks came in response to a question at a farewell media session about the recent uproar over Tsang’s rides on private yachts and jets and his bargain deal to rent a luxury penthouse in Shenzhen.

The scandals have exposed gaps in the anti-graft law, which currently does not apply to the chief executive. An independent commission to review the situation chaired by former chief justice Andrew Li Kwok-nang said earlier this month that the exception was “totally inappropriate”.

“I agree [Tsang’s dealings] were misconduct,” Yue said. “But he did not violate any rule since there was no mechanism whatsoever until Andrew Li Kwok-nang proposed one.”

Yue, who turns 60 in October, will end 38 years of government service on July 1, when she and Tsang leave to make way for the administration of chief executive-elect Leung Chun-ying.

Reflecting on the Tsang case, Yue recalled the conflict of interest controversy row surrounding her decision in 2008 to let former housing chief Leung Chin-man work for a developer with whom he had official dealings. She called the case “a milestone” that taught her a lesson.

In 2004, Leung Chin-man, who was then housing director, played a key role in the sale of a government housing estate to a subsidiary of New World Development at a discount. After retiring four years later, he drew fire when the company gave him a job, a move some saw as a deferred reward for helping the sale.

The scandal led last year to restrictions on post-civil-service employment for government officials. Yue said it was important for government officials to avoid both real and perceived conflicts of interest.

“Apparently there was a gap between my balance and public perception between an individual’s right to work and public interests,” said Yue, who has been leading the city’s 160,000 civil servants since January 2006. “It was a milestone and I learnt my lesson.”

Yue said what she would miss most after retirement was the sense of satisfaction she got from her job, but joked about her retirement plans.

“Maybe I will regain that sense of satisfaction by watching early-bird movies, which are offered at a discount,” Yue said.

Yue has no plans to take up a paid job herself. “Even if I do you do not have to worry about me. I can recite the post-service rules to its last word.”

tanna.chong@scmp.com