Kowloon-Canton Railway Corporation chairman Michael Tien has tendered his resignation to the Chief Executive, who will decide on the effective date.

Mr Tien said he resigned because he did not want to see the administration's governance being impaired and railway services at risk of suspension.

He said the KCRC's acting chief executive Samuel Lai sent him a letter regarding the corporation's governance and 'accusation' culture on Thursday night, while other senior management staff sent him similar letters the following day.

Mr Tien said the KCRC board is similar to the board of directors of an enterprise, and the chairman has the responsibility to know and to manage the company. He said he deeply believes it is right for him to maintain a high degree of transparency, to promote accountability culture and to play the role of a chairman. He said the KCRC board will meet next week and believed the Chief Executive will decide on his resignation after considering the board's view.

Grave concerns

The Chief Executive's Office said the Government was concerned over Mr Tien's resignation, and the Chief Executive has personally followed-up on developments.

Commissioner for Transport Alan Wong hoped Mr Tien will enhance communications with senior management and resolve the matter. He said although there is discord among the management, KCRC staff efficiency and morale should not be affected. He called on their support in providing reliable services.

Mr Lai said he respects Mr Tien's and the Chief Executive's decisions, adding services will not be affected. The KCRC management supports raising transparency and accountability, but that must be balanced with professional judgement and staff morale, he said.

He said he has the responsibility to reflect to the board problems between the chairman and the management. But he denied having communication problems or a character crash with Mr Tien.