01 Investigation
Written by: Zhou Weiqiang, Zheng Jiaru, Chen Xinxi
2020-09-04 16:21
Last update date: 2020-09-04 16:21
Another senior official of the Hong Kong government suspected of being sanctioned by the United States to change the mortgage status of his property.
"Hong Kong 01" found that the Secretary of Justice Zheng Ruohua, through his sole proprietorship held the Tuen Mun Haishi Villa detached house, and Shatin Chunjingyuan unit, this Tuesday (1st) all bank mortgage loans were repaid in one go.
Both properties were originally mortgaged by Standard Chartered (Hong Kong) Bank.
The bank’s sanctions policy states that “never involve any direct or indirect transactions with the sanctioned targets," and the sanctioned targets include those designated by the United States as sanctioned targets.
The reporter inquired with Zheng Ruohua through the Department of Justice and is awaiting reply.
The reporter also inquired with Standard Chartered Bank earlier, and the spokesman said there was no response.
Zheng Ruohua paid off his two property mortgages in one go at the beginning of the month
According to the latest records of the Land Registry, Ruohua Cheng, through his sole proprietorship, "Park Star Development Co., Ltd.", holds the Tuen Mun Haishi Villa House 4, and "Vai Xin Investment Co., Ltd." holds the Sha Tin Chun King Garden 7 middle-level units , And signed the release of the statutory charge on the 1st of this month, showing the repayment of all property mortgage loans; the document was delivered to the Land Registry for registration this Thursday (3rd).
Zheng Ruohua purchased a bungalow at Haishi Villa in Tuen Mun at the end of 2008 through a wholly-owned limited company.
(Land Registry Document)
Zheng Ruohua, through a wholly-owned limited company, purchased a unit in Chunjing Garden, Shatin for 5.95 million yuan at the end of 2006.
(Land Registry Document)
Zheng Ruohua's register of interests of the Executive Council also declares the two properties for family use.
According to the information, the Tuen Mun and Shatin properties were purchased for 26 million yuan in September 2008 and 5.95 million yuan in December 2006 respectively. The mortgages were originally undertaken by Standard Chartered (Hong Kong) Bank, but the relevant documents did not show that Loan amount.
On the 1st of this month, Zheng Ruohua paid off the mortgage of the two properties and the cancellation of the rent assignment.
(Land Registry Document)
(Land Registry Document)
(Land Registry Document)
"Hong Kong 01" asked Zheng Ruohua through the Department of Justice this afternoon (4th) whether she took the initiative to repay the property loan or was required to pay off. The arrangement and the US Treasury Department announced last month that 11 Chinese and Hong Kong officials including Zheng It is awaiting reply whether it is included on the sanctions list.
Standard Chartered Sanctions Policy: Never involve dealing with sanctioned persons
The U.S. Treasury Department announced on August 7 that 11 Chinese and Hong Kong officials were included in the sanctions list. Among them, Zheng Ruohua was deemed to have assisted in the introduction, implementation and implementation of the National Security Law and was therefore sanctioned.
The US sanctions include prohibiting commercial and financial institutions such as banks from dealing with the 11 people and requiring freezing of their related assets.
Most banks in Hong Kong have been following the US sanctions list.
According to the "Standard Chartered Bank Group Sanctions Policy Statement", Standard Chartered "a policy is never to involve any direct or indirect transactions with the sanctioned targets or bring any benefits to the sanctioned targets", and the sanctioned targets include those designated by the United States As the target of sanctions.
The reporter asked Standard Chartered in the middle of last month whether the mortgage loans of Zheng Ruohua and the two properties would be affected by the US sanctions. The bank spokesperson said there was no response.
The Secretary of Justice Zheng Ruohua was previously included on the US sanctions list, and his personal assets in the jurisdiction of the United States may be restricted.
(Information Picture / Photo by Zhang Haowei)
Zheng Fupan Letao Anle Engineering Gumei Elevator Company Equity Suspected of Avoiding U.S. Sanctions
Zheng Ruohua responded the day after the U.S. sanctions were announced last month, describing the U.S. sanctions as "desperate and illegal." She also said that compared with China and the people of the whole country, her personal interests are not important, and serving the country is an honor. She feels Proud and unwavering in maintaining national security.
She said that there is a strong backing country that will not be intimidated.
In addition to the above two properties, Zheng Ruohua and her husband Pan Letao together hold 63.48% of the shares of Anle Engineering (1977), which makes the listed company likely to be also affected by sanctions.
Anle Engineering has issued an announcement stating that Zheng, as the wife of Chairman Pan Letao, is only deemed to have its rights and interests, and Zheng Yu has no rights in these shares. Therefore, it is initially believed that the sanctions will not apply to the group.
However, Anle Engineering announced a few days later that it would sell 2% of the American elevator engineering company Transel Elevator & Electric for US$1.4 million (approximately HK$10.92 million). The shareholding will be reduced from 51% to 49%, making the company no longer an Anle Engineering. Affiliated companies are accused of evading US sanctions.
Haishi Villa in Tuen Mun has been found unauthorised basement by the Department of Justice and decided not to prosecute
Zheng Ruohua owns House 4 of Haishi Villa in Tuen Mun. When Zheng just took office as the Secretary of Justice in early 2018, he was found to have illegally constructed a basement.
Subsequent inspections by the Buildings Department confirmed that the roof of the detached house, the external wall extension of the basement floor, the glass canopy of the underground garage, and the basement were all illegally constructed.
The then Commissioner of Criminal Prosecution, Leung Zhuo Ran, stated in December 2018 that he decided not to prosecute Zheng Ruohua after considering the opinions of the external senior counsel, the evidence submitted by the Buildings Department, the applicable law and the "Prosecution Principles".
In addition, the properties of Repulse Bay Haifengyuan, Shatin Junjingyuan, and Fotan Jinhao Industrial Building under Zheng's name were also exposed to multiple unauthorized constructions. Among them, the 7 middle-rise units of Junjingyuan, Shatin were alleged by the Buildings Department. Fire doors that do not meet specifications.
U.S. Sanctions | Anle Engineering: Based on the advice of U.S. legal counsel to reduce the shareholding of local companies
US Sanctions | Anle Engineering issued a statement clarifying that Zheng Ruohua's sanctions do not apply to the group
Zheng Ruohua’s husband Pan Letao’s Anle Project earned 107 million in mid-term and no longer mentions promoting U.S. business
US sanctions | Zheng Ruohua affected by sanctions, Da'anle Engineering just acquired a US company this year
Zheng Ruohua involved in unauthorized construction Zheng Ruohua US sanctions
