Hong Kong had cancelled talks with student protesters last Thursday
The government decided to call of talks as the democratic lawmakers wanted the anti-graft officials to do an investigation on leader Leung Chun-ying for an alleged $6.4 million payout while he was still in office.
Political fallout stems from the protests in Hong Kong. Officials are currently attempting to defuse the political crisis over free elections as well as the call for Leung to step down.
Later in the evening, the students will hold a news conference. According to Chief Secretary Carrie Lam, "Students' call for an expansion of an uncooperative movement has shaken the trust of the basis of our talks and it will be impossible to have a constructive dialogue."
A few hours earlier, Hong Kong's Justice Department has handed the investigation to the prosecutors on the alleged business payout to Leung by an Australian engineering company. This includes "considering and deciding whether prosecution action is warranted" against the leader who has refused to step down in past weeks. This was over student protesters' calls for Beijing to keep its promise of universal suffrage.
The Justice department stated that its decision was focused at avoiding "any possible perception of bias, partiality or improper influence".
A report from Australia's Fairfax Media surfaced this week that UGL Ltd, an engineering firm, handed over to Leung a total amount of $6.4 million in 2012 and in 2013. This was in relation to its acquisition of DTZ Holdings, which is a property consultant that had hired Leung as its Asia Pacific director before he took his office last 2012.
Leung has denied any wrongdoing on his part. DTZ, on the other hand, did not give any comment and UGL said that they had no obligation to disclose the said agreement.
According to a letter to the Independent Commission Against Corruption by the Democratic Party chief executive Lam Cheuk-ting, "After CY Leung became CE (chief executive), he should have terminated the contract, because as a CE, it was impossible for him to continue accepting huge payment to help promote UGL or DTZ,"
He added that "There's reason to believe that CY Leung was eyeing the unpaid remuneration by UGL so that he continued with the agreement. Even worse, since CY Leung honored the agreement and accepted the payment, how could he not declare to the Executive Council?"
