Court told how late tycoon Henry Fok transferred $3.5b to close friend

Late billionaire Henry Fok Ying-tung transferred HK$3.52 billion to his close friend Ho Ming-sze, a former deputy secretary general at Xinhua News Agency's Hong Kong division, the high court was told on the first day of the hearing on the family feud over ownership of an HK$8.5 billion Nansha project.

The hearing, before judge David Lok, was scheduled for 60 days but was extended to 82 days yesterday.

In an agreement about the transfer to Ho, Fok granted him all rights to use the cash and stocks totaling HK$3.52 billion. Fok's family "shall not have any dispute on how Ho Ming-sze handles" the sum, the court heard yesterday. Ho died in 2018 at the age of 95.

The hearing was opened by senior counsel Benjamin Yu, who represents one of the plaintiffs, Nora Fok Lai-lor, daughter of Fok with his first wife, Fok Lui Yin-nei.

Yu said one of the defendants, Ian Fok Chun-wan, who is the second son of the late Fok, had told former chief executive Tung Chee-hwa that the late tycoon's legacy was about HK$11.3 billion.

The late Fok had also given the HK$3.52 billion to Ho, who was in charge of Fok Ying Tung Ming Yuan Development, which was responsible for the Nansha project.

Yu also said the late Fok wanted to revive his glory in the real-estate sector through his "Nansha dream" as he wanted to develop Nansha into "Shanghai Pudong in Guangzhou" or "Tsim Sha Tsui or Central in Guangzhou."

The development plan in Nansha, a city in the late tycoon's hometown Panyu in Guangzhou, was not only for charity. He also wanted to make a fortune from the project, the court heard.

The Nansha project's shares have been divided into two parts. One was held by Fok Ying Tung Panyu Development Foundation, and the other half by Yau Wing Co - apparently owned by Fok's siblings.

In June 1997, Yau Wing sold its shares to Fok Ying Tung Foundation for HK$1 and the foundation provided an interest-free loan to Yau Wing.

Both parties in the case agreed that Yau Wing had the right to buy back the shares at HK$1 within 10 years before June 30, 2007.

If Yau Wing bought back the shares in 2007, it had to repay a HK$2.3 billion loan to the foundation.

It was understood the three plaintiffs, the late tycoon's third son with his first wife Benjamin Fok Chun-yue, and two daughters, Nora Fok and Patricia Fok Lai-ping, would like Yau Wing to buy back the shares.

The late Fok had asked Ian Fok to transfer Yau Wing's shares to the foundation in June 1997.

Yu said from a commercial angle, Yau Wing would not transfer its share to the foundation without any reason, and believed that Yau Wing had to repay loans by the foundation on the Nansha project.

Yu also quoted a biography of Henry Fok where he had said he was a victim of "persecution by the US and UK" after having rented Star House in Tsim Sha Tsui to Chinese Arts & Crafts, which the British considered a pro-Chinese move.

The US consulate in Hong Kong blacklisted Star House, forbidding tenants there to trade US products.

Fok was forced to retreat from Hong Kong's property market after he was persuaded to sell Star House to British company Hongkong Land for just HK$37.5 million, the court heard.

One of the plaintiffs, Benjamin Fok Chun-yue, is expected to testify next Monday.

Benjamin Fok and his sisters Patricia Fok and Nora Fok filed a writ with the court to restart the feud in 2016, accusing their brother Ian Fok of allegedly concealing a buyback agreement on the Nansha project.

They also said their eldest brother, Timothy Fok Tsun-ting, knows about the buyback agreement.

The hearing continues today.

staff.reporter@singtaonewscorp.com