Allegations related to Venice corruption probe ‘unfounded and untrue’: Oxley CEO

SINGAPORE - Property developer Oxley issued a clarification on July 24 night following articles that reported the alleged involvement of its executive chairman and chief executive officer Ching Chiat Kwong in a corruption investigation against public officials in Venice, Italy.

Mr Ching said the allegations are “unfounded and untrue”, and has engaged lawyers to advise him on the matter.

The company said the chief executive was acting in his personal capacity in Italy, and that the transactions and investigations were not related to Oxley. The mainboard-listed property developer noted that the investigation has not affected the group’s business and operations.

The group was responding to three news articles detailing Mr Ching’s involvement in a corruption probe involving Venice mayor Luigi Brugnaro, who allegedly granted favours to developers in exchange for kickbacks.

The Associated Press reported on July 17 that Mr Brugnaro and two aides are being investigated for allegedly agreeing to ensure approvals for a 348,000 sq m residential and commercial project by Mr Ching for €150 million (S$218.4 million).

The development was for a piece of land Mr Brugnaro bought for €5 million at a public auction before he was mayor.

In a bourse filing, Mr Ching clarified that the allegations were brought about by Mr Claudio Vanin, the de facto director of a general contractor company that was appointed to develop property projects in Tuscany and Venice – Mr Ching’s personal investments.

Mr Vanin had accused Mr Ching of allegedly reaching an agreement with the Venice mayor to obtain a change in the building indexes and a favourable price for the purchase of two buildings owned by the municipality of Venice – Palazzo Dona and Palazzo Papadopoli. In exchange, the purchase price of the waterfront area – also known as Pili Land – will be increased.

Addressing the Pili Land deal, Mr Ching said that contact with Mr Brugnaro, which occurred in 2016 and 2017, did not result in negotiations.

As for the allegations surrounding the sale Palazzo Papadopoli, Mr Ching said he acquired the property through public and competitive procedures.

As a result of the allegations by Mr Vanin, Mr Ching was added to a register of persons against whom investigations are in progress. No charges by the Venice Public Prosecutor’s Office have been brought against him, he said.

Oxley’s nominating committee and its board have determined that the investigation does not compromise Mr Ching’s capabilities to carry out his roles in the company, and will continue to evaluate his suitability based on updated information. THE BUSINESS TIMES