DTZ parent company UGL has hit back at allegations in the Australian press that it made £4m of secret payments to prominent Hong Kong politician CY Leung.
Sydney-based Fairfax Media reported yesterday that Leung received a windfall from UGL for supporting the sale of DTZ Holdings by Royal Bank of Scotland to UGL in 2011. This included non-compete, non-poach and senior management retention agreements.
However, UGL has called the claims that payments were made in secret “baseless and misleading” in a statement issued this morning.
“The arrangements were made with Mr Leung, then a private individual, on commercial terms and with full knowledge of the vendor, in keeping with standard businesses practice for non-compete and non-poach agreements.”
UGL said that it was under no obligation to disclose the payments. However, the listed Australian company has faced an onslaught of criticism in the international media for a lack of transparency.
Leung had previously been the head of DTZ Holdings’ North Asia business, and was founder of the business that preceded the creation of DTZ North Asia. He resigned from DTZ in November 2011, after which UGL says that it entered into a two-year “non-compete” agreement with him, which included staggered payments over a two-year period.
Following the agreement, Leung went on to be elected chief executive of Hong Kong in the 2012 elections – a position that replaces the office of the governor of Hong Kong, the viceroy of the UK during British rule.
Embattled businessman and former surveyor Leung has faced calls from pro-democracy protesters in Hong Kong to stand down during student-led protests over the past week.
sophia.furber@estatesgazette.com
DTZ parent company UGL has hit back at allegations in the Australian press that it made £4m of secret payments to prominent Hong Kong politician CY Leung.
Sydney-based Fairfax Media reported yesterday that Leung received a windfall from UGL for supporting the sale of DTZ Holdings by Royal Bank of Scotland to UGL in 2011. This included non-compete, non-poach and senior management retention agreements.
However, UGL has called the claims that payments were made in secret “baseless and misleading” in a statement issued this morning.
“The arrangements were made with Mr Leung, then a private individual, on commercial terms and with full knowledge of the vendor, in keeping with standard businesses practice for non-compete and non-poach agreements.”
UGL said that it was under no obligation to disclose the payments. However, the listed Australian company has faced an onslaught of criticism in the international media for a lack of transparency.
Leung had previously been the head of DTZ Holdings’ North Asia business, and was founder of the business that preceded the creation of DTZ North Asia. He resigned from DTZ in November 2011, after which UGL says that it entered into a two-year “non-compete” agreement with him, which included staggered payments over a two-year period.
Following the agreement, Leung went on to be elected chief executive of Hong Kong in the 2012 elections – a position that replaces the office of the governor of Hong Kong, the viceroy of the UK during British rule.
Embattled businessman and former surveyor Leung has faced calls from pro-democracy protesters in Hong Kong to stand down during student-led protests over the past week.
sophia.furber@estatesgazette.com
