KCRC- Something fishy? - 17 Mar, 2006 KCRC - Railway off tracks
… but who threw things off tracks?
Dear Subscribers & Friends
After a week of turmoil at government-owned KCRC, and as events unfold, something does not smell right. There is a deep rot somewhere. There could be skeletons in the cupboard that will start to fall out to the great embarrassment of ministers and senior officials.
It seems someone wanted to give Tien a hard time but things back-fired. Is this a governance issue or a political issue?
A. Series of Events
1. Tien’s appointment: Former chief executive CH Tung appointed businessman Michael Tien to chair KCRC. Tien likely told Tung he is not a sit-back-do-nothing guy and Tung likely asked Tien to help improve governance at KCRC.
2. KCRC Board: KCRC is entirely government-owned and on its board are two ministers, Sarah Liao and Frederick Ma, respectively in-charge of transport and treasury functions.
3. Big revolt: Top executive (Samuel Lai) submitted letter to the Board on 9/3 complaining about Tien’s leadership style and said he couldn’t work with Tien anymore. The next day (10/3), top KCRC staff wrote to the Board pledging support for Lai, and in another letter, 3,000 staff members wrote to support Lai.
4. Tien’s resignation: Tien went to see chief executive Donald Tsang to resign on 11/3, leaving the date open on when he would step down. Tien gives press conference about his resignation on 12/3.
5. Tsang’s intervention: On 13/3, Tsang summoned Tien and Lai separately and demanded the KCRC Board to resolve ‘the problem’ in 3 days. Tsang warned there were personnel and disciplinary issues involved too in view of the staff revolt.
6. Staff showdown: Senior KCRC staff, led by Michael Lai (MT), held press conference on 14/3 to support Lai as Board holds emergency meeting.
7. Everything’s OK: On 15/3, Liao announced Tien and Lai would both stay; Tien would be a less hands-on chairman. Liao smiles for the cameras. Tsang said crisis was over.
8. Lai resigns and new blowout: Lai resigned yesterday as MT was fired for breach of duty and others received warning letters. Lai said he did not expect things to turn out this way. The government brings back former head of Works and thereafter management head of KCRC James Blake to hold the fort and announced the merger with MTRC should be expedited.
B. What does not make sense …
1. Things must have been brewing: Liao and Ma must have known how bad things were between Lai and Tien. They would presumably have a view on both men and where the problem laid.
2. Confident revolt: To organise such a large revolt, there must have been powerful backing. The most interesting comment came from MT on 15/3 who said he was NOT worried about Tsang’s warning about personnel and disciplinary issues. He would usually be worried as the ring leader.
3. Out of step with plan?: News reports today say it was NOT Liao and Ma who wanted to fire MT. This means reporters got insider information that the move to fire MT came from other non-executive Board members, who probably knew much less than Liao and Ma. Lai then resigns - he said he did not expect ‘things to turn out like this’. Could this mean he didn’t expect colleagues to be fired? Lai’s letter, senior staff’s letter, junior staff’s letter and the senior staff press conference appear to have been coordinated if not orchestrated.
C. Concluding Observation: Who wanted Tien out?
It seems someone wanted to get Tien out but things back-fired. Is this a governance issue or a political issue?
CHRISTINE LOH
Civic Exchange - HK’s independent think tank
www.civic-exchange.org