Lo mounts final legal challenge to Link Reit listing


Albert Wong


April 7, 2005


An elderly woman who has been a thorn in the side of government plans to privatize some of its stock has put up a final challenge to the planned HK$32-billion Link Real Estate Investment Trust (Link Reit) listing.

Lo Siu-lan, 67, is claiming in court that the decision to hear her appeal against Link at short notice last December contravened Article 35 of the Basic Law. The article states that Hong Kong residents shall have the right to confidential legal advice, access to the courts, choice of lawyers for timely protection of their lawful rights and interests or for representation in the courts, and to judicial remedies.

A ``Notice of Motion'' for a hearing in the Court of Final Appeal was filed at the High Court Wednesday claiming the privatization of public housing services is ``inconsistent with the over-riding duty of the Housing Authority.''

Furthermore, Lo and her counsel allege that by forcing the appeal to be heard virtually immediately, she was deprived of her basic right to access to the courts, choice of lawyers and ``timely protection of lawful rights and interests.''

Justice Michael Hartmann ruled in favor of the Housing Authority in the High Court on December 14, dismissing Lo's challenge of the Housing Authority's attempt to sell off its assets via the Link Reit listing.

Senior Counsel Daniel Fung then applied for an order for abridgment on behalf of the Housing Authority so that the appeal could be heard as soon as possible. On December 15 it was decided to hear the appeal the next day.

The appeal was heard on December 16, but Lo's legal representatives did not attend in protest at what they said was inadequate time for them to prepare their legal arguments. Lo's case was heard via a written submission only and was consequently dismissed.

Chief Judge Geoffrey Ma, Justice of Appeal Frank Stock and Justice of Appeal Doreen Le Pichon agreed unanimously in dismissing the appeal, but Le Pichon raised concerns about hearing the appeal at such short notice.

``The appellant and those whom she in effect represents at large have serious and important social welfare interests which merit close and careful consideration and [this] is a decision that I have reached with considerable hesitation and reluctance,'' Le Pichon said.

In response to the application for another appeal, the Housing Authority issued a statement saying it hoped for ``an early conclusion of these judicial review proceedings, with a view to re-launching the Initial Public Offer of the Link Reit as soon as practicable.''

Lo's legal team, led by Senior Counsel Philip Dykes, argues that the privatization of the commercial outlets will deprive public housing tenants of their right to cheap ``housing'' which should be managed by the government and not market forces.

Lo's appeal must first go through several more judicial procedures before a time is finally scheduled for a Court of Final Appeal hearing.

Hectar Pun, a barrister assisting Dykes in the case, said the date of the hearing will depend on whether the judges think it important enough to let it jump the queue.

District Councillor Andrew To Kwan-hang, who helped file the notice at the High Court Wednesday, said the issue of privatization of public services is debated around the world and affects the livelihood of ordinary citizens.

``Such important issues should reach a consensus in our society,'' rather than be submitted without public consultation, To said. ``If the government were sincere [in debating important issues through public consultation], it should not have bypassed the Legislative Council,'' he added.

``The government has to answer to the public why it chose to avoid the proper process.''

The listing was originally scheduled for December 20, but was aborted on the eve of its debut on the stock market.

The derailed listing came as a major embarrassment to the government and a huge blow to the cash-strapped Housing Authority which wants to offload its 79,000 car park spaces and 180 shopping malls. The Link Reit Initial Public Offering was 130 times oversubscribed and drew US$36 billion (HK$280 billion) in orders from more than 500,000 small investors.

Lo's appeal has dragged on after she was initially delayed legal aid, but last month a three-member legal aid committee of review ordered the Legal Aid Department to help Lo in her application to the Court of Final Appeal.

staff.reporter@singtaonewscorp.com

 


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