The personal bank accounts of Hong Kong tycoon Jimmy Lai were handled by a former senior executive at his media company, a prosecution witness has said at Lai’s landmark trial under the Beijing-imposed national security law.
Next Digital’s former chief financial officer Royston Chow, who was arrested on suspicion of conspiring to collude with foreign forces in June 2021, told the court on Wednesday that he had “rubber-stamped” payments allocated to “projects” led by Lai’s aide Mark Simon.
Chow was granted immunity by the prosecution in February 2022 in exchange for testifying against the tycoon in the present trial and in a separate fraud case.
According to Chow, since he took up the role of finance chief of the media company in around September 2019, he had been involved in handling the personal bank accounts of the 76-year-old mogul.
The prosecution asked Chow about a payment of US$2 million from Lai’s personal account at the Shanghai Commercial Savings Bank in April 2019. An email was shown in court, which showed that Chow was asked to approve the payment.
When asked about the purpose of the payment, Chow said it was for “projects approved by Mark Simon.” The ex-CFO said he had to ensure that, when Simon – whom Chow described as having no “official title” at the media company – submitted a “special project” which was approved by Lai, he would then approve the payment voucher.
Judge Alex Lee questioned whether Chow would check any supporting documents before approving the payment. The former executive admitted he had not read any document that proved Lai’s endorsement.
“If you had not looked at the document, you are just rubber-stamping…” Lee said in English.
Chow replied in Cantonese: “You can say that. But eventually, since the account was the personal account of Jimmy Lai, the cheque or remittance would need his signature.”
Boosting foreign support
The prosecution on Wednesday grilled Chow on his involvement in the launch of the online English version of Apple Daily and the publication and distribution of a special feature titled Freedom Summer, which contained images of the city’s protest scenes in 2019.
Chow told the court that Simon had requested 2,000 odd copies of Freedom Summer for distribution abroad, including in the US and the UK.
Chow added that launching an English version of Apple Daily and printing the special feature were attempts to attract the attention of foreign countries and shine light on the “anti-government situation” in Hong Kong. Lai believed that it was very important for the movement to gain outside support, Chow said.
He testified that “it was hoped that the support of foreign countries could be obtained… or perhaps a more drastic measure would be sanctions.”
Protests erupted in June 2019 over a since-axed extradition bill. They escalated into sometimes violent displays of dissent against police behaviour, amid calls for democracy and anger over Beijing’s encroachment. Demonstrators demanded an independent probe into police conduct, amnesty for those arrested and a halt to the characterisation of protests as “riots.”
The prosecution completed their examination of Chow on Wednesday. The case was adjourned to Thursday morning for the defence to begin their cross-examination.
Wednesday marked day 72 of Lai’s 80-day trial under the national security law. He also stands accused of conspiring to publish “seditious” materials under a colonial-era law. He could face up to life in prison if convicted.
Request for Ex-CEO to testify again
On Wednesday, defence lawyer Robert Pang informed the court that his team would apply to call former CEO of Next Digital Cheung Kim-hung to the stand again.
Pang’s team intended to ask Cheung about records from the communication platform Slack, which the defence said was never disclosed by the prosecution.
The judges said they would handle the application on Thursday.
The ex-publisher of Apple Daily first testified against Lai in January. He told the court at the time that the media mogul had instructed Apple Daily to mobilise protests and call for sanctions.
He also told the court that Lai’s political views became “radical” after meeting then-US vice-president Mike Pence during the 2019 extradition bill unrest.
Lai’s lawyer accused Cheung of attempting to “put the blame” on the media mogul with his “contradictory” testimony. The former senior executive also denied claims that the police had invited him to become a prosecution witness.
Beijing inserted national security legislation directly into Hong Kong’s mini-constitution in June 2020 following a year of pro-democracy protests and unrest. It criminalised subversion, secession, collusion with foreign forces and terrorist acts – broadly defined to include disruption to transport and other infrastructure. The move gave police sweeping new powers and led to hundreds of arrests amid new legal precedents, while dozens of civil society groups disappeared. The authorities say it restored stability and peace to the city, rejecting criticism from trade partners, the UN and NGOs.
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