Mark Clifford and Gordon Crovitz, senior executives at Next Digital, have filed a complaint against the global accounting auditing firm. It allegedly enabled rights violations by providing essential services to Hong Kong authorities. The initiative casts more than a shadow over the company’s “help” to government authorities in suppressing critical voices.
Hong Kong () – Two former Next Digital executives have filed a lawsuit against global auditing firm BDO, accusing it of helping Hong Kong authorities liquidate the company founded by Jimmy Lai, a pro-democracy Christian activist who has been in prison since 31 December 2020. The initiative not only puts the spotlight back on the imprisoned tycoon and the growing crackdown on press freedom in the former British colony, but also aims to shed light on the “external” support of companies, agencies and organisations to the Hong Kong (and Beijing) authorities in repressing critical voices.
In late 2021, a court ordered the liquidation of Next Digital Limited, founded by Lai in 1990 as the parent company of Apple Dailywhich was for a long time Hong Kong’s largest media company. From then on, the company was controlled by administrators appointed by the authorities themselves. The court order was issued after police raids on the offices of the pro-democracy newspaper’s editorial office and the freezing of HK$18 million in Next Digital assets in June 2021. In addition, Lai was charged with violating the controversial national security law imposed by Beijing and is still on trial for collusion and sedition.
According to reports from Hong Kong Free Press (HKFP)Mark Clifford and Gordon Crovitz, both former executives at Next Digital, filed a complaint with the British government in December last year. In the 32-page statement, the two senior executives at the company claim that “BDO has allowed abuses [contra los derechos humanos] providing essential services to the Hong Kong government.” In addition, Clifford, former editor-in-chief of the South China Morning Postand Crovitz, former editor of the Wall Street Journalthey state in the document that they were forced to leave the former governorate due to the risk of being arrested by the city’s national security authorities.
Both said the local subsidiary of BDO, a UK-based global accounting firm, and Clement Chan, its chief executive, had “acted as a quasi-governmental agency” at the behest of Hong Kong government representatives “without any judicial oversight.” In July 2021, shortly after the raids and arrests that led to an asset freeze, Clement Chan – who has chaired the city’s Consumer Council since 2022 – was tasked by chief financial officer Paul Chan with investigating Next Digital’s financial affairs. In September that year, Clement Chan submitted an interim report to the finance chief, who subsequently cited “public interest” in ordering Next Digital’s liquidation.
Clifford and Crovitz claimed that by assuming the role of supervisors and liquidators, Chan and BDO violated rules set by the Intergovernmental Organization for Economic Cooperation and Development. In the face of the accusation, BDO failed to refrain from “improperly engaging in political activities,” effectively acting as an inspector of Next Digital’s financial status. Chan, quoted in an article by Reutersclaimed his role was a “personal appointment” by the finance chief under the city’s Companies Ordinance, but declined to answer questions posed by HKFP. Chan’s appointment as Next Digital’s inspector has been extended several times, most recently for six months, announced in July. At the same time, in a written email response, a BDO Global spokesperson stated that the firm “cannot provide further information” due to confidentiality obligations related to the UK procedure.
In addition to having created one of the most distinguished and respected newspapers for its independence and seriousness, at least until its closure by the pro-Chinese authorities, Jimmy Lai is also famous for being one of the most prominent figures in the city’s Catholic community. He has been in prison for more than three and a half years, supported by his faith. The trial against him, which has been going on for months, has become an opportunity for the pro-Beijing authorities who now govern Hong Kong to accuse of connivance – even with grotesque accusations – any voice or initiative in favour of democracy in Hong Kong.
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