HEADLINES: Ex-legislator closes HK PR shops after scandal

Mr Gary Cheng, the former legislator forced to close his two PR agencies over a corruption scandal, has denied a conflict of interest but admitted he was "confused" over the issue of client conflict. He said the purpose of running two agencies was to avoid client conflict, but that he had become "confused" over which agency was handling individual accounts. "It's my fault because we ran some accounts in the same office doing the same job," Mr Cheng said. "I overlooked several issues. We intended to streamline the jobs, but they covered the same accounts. Even I was confused." The admission has served to raise concern in the PR industry over ethical standards on conflict issues. An MD of a PR agency in Hong Kong said: "His management process may be at the root of why this enquiry has taken place." Mr Cheng will close Gary Cheng Kainam's Public Relations Consultants and Asia Ford Consultants later this year after admitting to passing confidential government documents to business contacts while serving in a government post. He started Gary Cheng Kainam's Public Relations Consultants in July 1997, offering political analysis, crisis management, media training and political campaign support. Six months later, with a client list which included many of Hong Kong's largest companies, including Hutchison, Cheung Kong, Cathay Pacific, Towngas, and KCRC, he launched Asia Ford Consultants to handle conflicting accounts. Mr Cheng denied allegations that he used his government position to assist his clients. "Every time we opened a new account we informed our clients of our principles," he said. This included refusing to submit motion debates to Legco, vote or amend agendas or work for clients on policy issues which conflicted with his own views as a legislator. The allegations are under investigation by the disciplinary committee of the Democratic Alliance for the Betterment of Hong Kong, the political party of which he is vice-chairman. * The full story can be found in Asian PR News, a sister publication to MEDIA, available only by paid subscription. For details, email subscrib@media.com.hk.

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