Former Next Media Board Members Accuse BDO ⁢of Assisting Hong ⁤Kong Government in Violating Human Rights

Former‌ Next Media board ‌members Mark Clifford and Gordon Crovitz have filed a complaint with the British government, accusing BDO of assisting the Hong Kong government in liquidating Next Media,⁣ in violation of the Organization for​ Economic Co-operation and Development (OECD) regulations. The ⁤OECD regulations require multinational enterprises to prevent or mitigate human rights violations and hold parent companies accountable for their⁢ overseas subsidiaries.

Gordon Crovitz, the ​former publisher of the ⁤Wall Street Journal, and⁢ Mark Clifford, the former editor-in-chief of ‍the‍ South China Morning Post and current chairman of​ the Committee​ for Freedom in Hong Kong Foundation,​ wrote to the British Department of Commerce‍ and Trade in December last year. They alleged that Clement Chan, a director ​of BDO Hong Kong, was ⁤appointed by the⁤ Hong Kong government to serve ‌as a financial investigator against Next Media in July 2021.

The complaint claims that⁢ Chan used his power under Hong Kong law to require Next Media directors to conduct video interviews⁤ and hand over relevant documents, threatening prosecution if they ‌failed to comply. The report written ‍by Chan helped the Hong Kong government justify the liquidation of Next Media. In September 2021, Financial Secretary Paul Chan Mo-po stated that the government decided to close‌ Next Media based on public interest, citing ⁣Chan’s report.

Gordon Crovitz stated, “The prosecution of Jimmy Lai and the forced closure of Apple Daily are⁣ sad for Hong Kong. Whether it​ is for press freedom or ⁢the liquidation ⁤of a listed ‍company​ without legal proceedings, it is a concerning ⁢development.”

The Hong Kong Freedom Committee Foundation⁤ issued a statement, quoting Mark Clifford as​ saying that BDO allowed its senior management ​to ‍help the Hong Kong government’s “tyranny” by shutting down the media founded by British citizen Jimmy ⁤Lai and⁢ freezing its‍ bank accounts. This resulted in hundreds of employees losing their jobs and being unable to receive paychecks. Clifford called⁣ on BDO to stop serving as a financial investigator ‌for the Hong Kong government and apologize to the people of Hong Kong and⁢ all customers and employees of BDO.

Clement Chan responded to the allegations, stating⁤ that ‍he was ​appointed as a ‌financial investigator for Next Media in his personal capacity‍ under the Hong Kong Companies Law. He claimed that his role was to investigate ‍Next Media, not to disband⁣ it. However, his letter was sent in the name of “Next Media‌ Co., Ltd. Investigator’s Office” and ​its address is downstairs at ​BDO’s Hong Kong headquarters.

The British Department of Commerce ​and Trade stated that⁤ stakeholders in the case need to respond to the allegations so that the UK government can decide whether to arbitrate‍ the complaint. The relevant decision will be announced on the website in ⁤due course.

The case highlights the political risks faced by international companies doing business in Hong Kong under the National Security Law. The Center for Research on Multinational Corporations, a non-profit independent investigation organization in the Netherlands, analyzed that BDO may be the first accounting firm in the world to be complained about for collusion. This is a unique case ‌with significant geopolitical elements, and companies like BDO rely on their image and reputation. If investors ​or business ⁤partners ⁢consider the company irresponsible, it could result in financial losses.