TUI confirms decision to nullify La Scala land grants

TUI confirms decision to nullify La Scala land grants

The Court of Final Appeal (TUI) yesterday upheld the government’s decision in 2010 to reclaim the lands housing the upmarket residential project La Scala, which has been linked to the corruption case of the disgraced Secretary for Lands and Public Works Ao Man Long.
The ruling is the final blow to the hopes of Hong Kong billionaire Joseph Lau. Lau owns the offshore company (Moon Ocean) that was developing the project before the nullification.
Chief Executive Chui Sai On, reacted to TUI’s decision yesterday via a government spokesperson statement: “Given yesterday’s TUI decision, the Chief Executive has instructed the Secretary for Transport and Public Works to begin the preliminary works of urbanization in order to utilize the land plots. The government will implement the commitment made during the Policy Address, namely to use the land plots to benefit the public, giving priority to public housing.”
The statement added that around 4,000 flats are expected to be built at the location.
The 106-page Portuguese version of the TUI ruling is available online. The ruling notes that Moon Ocean doesn’t have ownership over the five land plots, despite having paid MOP1.3 billion for them.
A ruling signed by judges Song Man Lei (rapporteur), Sam Hou Fai and Viriato de Lima states that the land granting process was tainted by illegalities linked to the Ao Man Long corruption case. The former secretary had received a HKD20 million bribe to grant the plots to Moon Ocean.
According to the TUI, Joseph Lau and his partner Steven Lo took the decision to buy the land plots and negotiated directly with Ao Man Long.
“The nullification of the acts is based on the criminal conduct of the former secretary but also of the bidder,” the ruling reads. PB