Hong Kong property tycoon Walter Kwok arrested in bribery investigation

http://www.guardian.co.uk/world/2012/may/04/hong-kong-property-walter-kwok

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The former boss of Hong Kong's largest property developer has been arrested in a high-profile anti-corruption investigation that has already targeted his billionaire brothers and a top official.

Walter Kwok, former chief executive of Sun Hung Kai Properties, was arrested by anti-corruption police on Thursday as part of an investigation into alleged bribery. Kwok, who is still a director of Sun Hung Kai, was later released on bail.

His brothers, Thomas and Raymond Kwok, who are joint chairmen of Sun Hung Kai, were arrested in March by the Independent Commission Against Corruption along with a former chief secretary – the No 2 job in the government.

No one has been charged. Thomas Kwok, 60, and Raymond, 58, have denied any wrongdoing. They are estranged from their brother after ousting him as Sung Hung Kai's chairman and CEO in 2008 amid a bitter feud over control of the company.

The arrest, announced on Friday, adds another twist to a scandal that has shocked and fascinated Hong Kong, where billionaire property developer tycoons who once occupied an exalted position in society are viewed with growing mistrust.

Many residents are angry about a widening rich-poor gap driven by surging property prices. The scandal is the latest to highlight ties between real estate companies and the government, which controls all of the land in the densely populated Chinese city.

In an interview with the South China Morning Post newspaper earlier this week, Walter Kwok, 61, tried to distance himself from the scandal and said he was intensifying his battle for control of the company.

The Kwok family is one of Asia's richest, with a net worth of $16bn (£10bn), according to Forbes. It estimates $2.3bn has been wiped off their wealth since the scandal broke.

Sun Hung Kai has built some of Hong Kong's most recognisable buildings, including the 118-story International Commerce Centre in Kowloon, the city's tallest.

The company said the latest arrest would not affect its operations.