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Following is the speech by the Chief Executive, Mr Donald Tsang, at the Third ICAC Symposium on "Corporate Corruption, Integrity and Governance" this morning (May 9) (English only):
"Partnership Against Corporate Corruption"
Distinguished guests, ladies and gentlemen,
Good morning. Welcome to the Third ICAC Symposium. And to all our visitors from out of town, a special welcome from Hong Kong with its blue sky and clean air at the beginning of summer. We may come from different cultural backgrounds. We may speak different languages. We may work for different governments or enterprises. But we are all here for a common goal - to preserve corporate integrity, the foundation for sustainable growth.
In the words of the President of the World Bank, Mr Paul Wolfowitz, "Corruption not only undermines the ability of governments to function properly, it also stifles the growth of the private sector". The reason, he says, is that investors "worry that where corruption is rampant, contracts are unenforceable, competition is skewed, and the cost of doing business becomes stifling." I could not agree more with Mr Wolfowitz.
Hong Kong has many attributes that make it Asia's world city. These include the rule of law, the world's freest economy, the free flow of information, a low and simple tax regime, a versatile and industrious workforce and world-class infrastructure, to name a few. Underpinning all these attributes is a clean government that provides a level playing field for all businesses to thrive and grow, no matter where they come from. The rules for doing businesses here are unambiguous and transparent, and no one is above the law.
Clean government is enshrined in our laws and, it is part of the culture of our community. Preventing corruption is a Government commitment. We stay alert to the risk of corruption, and tackle the problem head-on when it arises. Fighting corruption in the commercial arena is equally important. The HKSAR Government is determined to protect and promote probity and good governance in both private and public sectors.
Hong Kong now stands proudly as an "anti-corruption capital" for the world and one of the leading advocates of corporate integrity. Our comprehensive strategy of attacking corruption through prevention, education and law enforcement, and the equal emphasis placed on both the public and the private sectors, have over the years underpinned our economic success. Earlier this year, the US-based Heritage Foundation named Hong Kong the world's freest economy for the 12th consecutive year. Among the fundamental criteria used by the Foundation to judge economic freedom are clean government and an absence of corruption.
We take pride in what Hong Kong has achieved. But the recent failures of corporate giants around the world have been a reminder for us all that we must fortify our guard against corporate corruption and fraud. With accelerated globalisation and rapid technological advances, corruption in the corporate world has become increasingly sophisticated and difficult to tackle. Law enforcement agencies cannot do it alone. It is imperative for corporate leaders to sharpen their vigilance, strengthen their regulatory regimes, and nip any corrupt or fraudulent acts in the bud. We need to forge a united front against corruption - a public-private partnership among business and professional organisations, corporations, law enforcement agencies, regulators and governments that reaches beyond the boardroom and crosses national boundaries.
In a global economy, no individual jurisdiction can tackle corruption strictly within its own boundaries. In recent years, anti-corruption efforts have taken the form of international co-operation among anti-corruption regimes worldwide. Hong Kong is an active player in this campaign. Representatives from Hong Kong's ICAC work on anti-corruption initiatives under the auspices of organisations such as APEC, the Financial Action Task Force, Interpol, the Asian Development Bank and the OECD.
This year, the United Nations Convention Against Corruption was extended to Hong Kong following the ratification by China. The Convention greatly facilitates international co-operation in every aspect of the fight against corruption. It provides a wider and stronger foundation for mutual legal assistance in investigation, prosecution and extradition of offenders, as well as tracing, freezing, seizure and confiscation of corrupt proceeds. More important, the Convention makes a major breakthrough in international co-operation by requiring the return of assets obtained through corruption to the country from which they were stolen.
Ladies and gentlemen, fighting corruption and preserving corporate integrity require the joint efforts of law enforcement agencies around the globe as well as the private and public sectors. There is scope for strengthening the existing network and enhancing co-operation. In this vital spirit of global partnership and alliance, the ICAC has organised this symposium on "Corporate Corruption, Integrity and Governance" to provide a platform for tapping the experience and knowledge of experts from around the world. I hope you will find the discussions at this symposium rewarding, and your time here well spent - especially if you also get a chance to look around this Asia's world city, in particular, the blue sky.
I now declare the Third ICAC Symposium open and wish it every success. Thank you very much.
Ends/Tuesday, May 9, 2006
Issued at HKT 10:57
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