The Hong Kong Special Administrative Region Government today strongly condemned the unfounded smear and malicious attacks online, after the Court of First Instance, in accordance with the law, issued an order to confiscate the proceeds Hui Chi-fung obtained from committing offences endangering national security.

The court, upon application by the Department of Justice (DoJ), issued the confiscation order under section 9 of Schedule 3 of the Implementation Rules of Article 43 of the National Security Law, concerning the confiscation of proceeds Hui Chi-fung obtained from the aforesaid offences.

The Hong Kong SAR Government issued a statement to provide the facts and set the record straight, stressing that the application for and issuance of the confiscation order must comply with the strict conditions specified in Schedule 3 of the implementation rules, including that the court must be satisfied the absconded defendant could have been convicted of the relevant offence and must determine whether the defendant has benefitted from that offence.

It stated that the court must also ascertain the value of the proceeds of the offence endangering national security and the amount that might be realised at the time the confiscation order is made. There is absolutely no situation in which private property could be “confiscated at any time” or “arbitrarily”.

In addition to noting that Hui Chi-fung has committed numerous heinous crimes with a number of criminal charges laid against him, the Hong Kong SAR Government pointed out that he is currently a wanted person with a reward notice by Police and specified as a relevant absconder by the Secretary for Security under sections 89(1) of the Safeguarding National Security Ordinance.

The Hong Kong SAR Government indicated that before and after Hui Chi-fung absconded from Hong Kong, he transferred nearly $2.5 million in personal assets as gifts to his mother and wife. The court is also satisfied with the relevant transaction evidence submitted by the DoJ.

According to the law, if a defendant benefits from committing an offence endangering national security and makes a gift at any time from six years before the date of prosecution onwards, the property held by the recipient of the gift may be regarded as the defendant's realisable property and confiscated.

The value of the criminal proceeds ordered for confiscation by the court is determined strictly based on evidence and in accordance with the law. The value of the criminal proceeds attributed to Hui Chi-fung was calculated based on the relevant evidence to establish a reasonable value, the Hong Kong SAR Government explained.

Additionally, it emphasised that Hong Kong is a society underpinned by the rule of law and has always adhered to the principle that laws must be obeyed and lawbreakers held accountable.

Apart from specifying that it is a common and effective practice to make an application to the court for a confiscation order to prevent offenders from benefitting from their criminal acts, the Hong Kong SAR Government said that laws and mechanisms for confiscation of crime proceeds are common around the world.

They cover the crime proceeds from commission of any serious offence, including offences endangering national security, it added.