Links between the owners of Chow Tai Fook Enterprises (CTFE), the Cheng family and Stanley Ho are being questioned by a politician in the Bahamas, demanding that due diligence be conducted on CTFE regarding its purchase and operation of the US$3.5 billion (MOP28 billion) Baha Mar resort complex in the territory, according to a press release by the territory’s Democratic National Alliance (DNA) leader Branville McCartney.
Mr. McCartney demands that the Bahama Administration reveal whether it has probed CTFE’s dealings and business connections, claiming that the government is duty bound to publicise the jewellery giant’s track record.
“The DNA notes that the responses from Chow Tai Fook and members of our Government have been to try to whitewash the facts and concerns of the public by simply suggesting that the principal owners of Chow Tai Fook, who are the Cheng family, are simply investors in enterprises of another one-time rumoured purchaser of the Baha Mar, Stanley Ho,” comments the DNA leader. “Ho, as was published locally, has had regulatory and legal issues worldwide, including the United States, with respect to his criminal associations,” claims Mr. McCartney.
“Beyond his substantial investment – and directorship – in the Ho casinos which he has held for 34 years,” states the politician, “Cheng (Henry Cheng Kar Shun) holds no fewer than six partnerships with Ho in Macau, including Heng Seng Bank, the target of a United States investigation of money laundering for North Korea, as well as Macau’s dog racing track, its horse racing track, its sports book, and ferry lines. The public record is crystal clear on all of these relationships.”
Director Cheng
In 2014, the company controlled by Cheng’s family – International Entertainment Corp. – notified their intent to buy a 70 per cent stake in Sun City Gaming Promotion Co. for HK$7.35 billion, according to Bloomberg.
However, according to the group’s fiscal 2014/2015 Annual Report, the terms of the agreement expired at end-2014 ‘without any definitive agreement’ having been made.
With regard to links to Stanley Ho, as noted in Sociedade de Jogos de Macau’s (SJM) 2015 annual report, Henry Cheng Kar Shun held a directorship position at SJM from March 2013 and a non-executive directorship position since May 2013, including a share position in the company.
In previous statements to Bahamas publication Tribune 242, Chow Tai Fook notes that ‘the Cheng Family is an investor in STDM, which owns the gaming subsidiary, SJM. In addition the Cheng family’s role in the Macau casino is strictly as in investor, with no involvement in day-to-day management of the casino or oversight of the gaming industry in Macau. There will be no affiliation on this project with STDM or SJM’.
According to Hang Seng Bank’s 2015 annual report Cheng is also an independent non-executive director and member of the board, having joined in May 2014, as well as holding directorships in 10 other major companies including Chow Tai Fook and New World Development Company.
Regarding Hang Seng’s potential link to North Korea, a Wikileaks file alleging to be from 2009 notes that in response to questions by compliance and money laundering control officers: ‘Hang Seng maintains high anti-money laundering standards and that suspicious transactions, in particular those that appear to have links to North Korea, will continue to be properly screened,’ claiming to quote an Assistant Manager of the bank at the time.
