Leung Chun-ying: under pressure

AFP/Hong Kong

Hong Kong's embattled leader faces a "huge integrity problem", opposition politicians said on Thursday as they called on him to explain why he kept large payments from an Australian company secret.

Leung Chun-ying, who is already facing down mass pro-democracy protests that have paralysed parts of the financial hub for more than a week, has yet to comment publicly on the affair.

But his office has said he was under no legal obligation to declare the earnings.

The revelation comes as Chinese president Xi Jinping launches a widespread anti-graft crackdown and austerity drive targeting party officials on the mainland which took control of the former British colony in 1997.

Australia's Fairfax Media reported on Wednesday that Leung received two payments totalling HK$50mn ($6.5mn) from Australian engineering company UGL while in office.

The payments relate to a deal struck in December 2011 - months before Leung took office, but a week after he announced his candidacy - during UGL's purchase of insolvent property services firm DTZ, where Leung was a director and chairman of its regional operations.

UGL said it would pay Leung over the next two years not to compete with them, and the contract signed by him showed he agreed to act as an "adviser from time to time".

Opposition lawmakers on Thursday expressed their dismay that Leung, who became the city's chief executive in July 2012, did not declare the payments to the Hong Kong public.

"It boils down to a huge integrity problem," pro-democracy lawmaker Claudia Mo said. "Can you imagine Obama being a consultant of some company while being a political leader?"

A Democratic Party member said he would refer the case to the city's anti-corruption watchdog.

Protesters still camped out on the streets, also voiced anger over the deal.

Leung's office defended the deal, saying it was "a confidential commercial arrangement and a standard business practice".

"Mr Leung has not provided any service to UGL after signing the above agreement," it said in a statement, adding "there is no requirement under our current systems of declaration for Mr Leung to declare the above".