Former Hong Kong Chief Executive Carrie Lam’s Annual Expenditure Nearing Ten Million, Increase of Thirty Percent Sparks Controversy

Former Chief Executive Carrie Lam’s previous Chief Executive Office saw a significant increase in its annual operating budget for the 2023/24 fiscal year, reaching a staggering HK$9.17 million, marking a 32% year-on-year increase. This revision has drawn considerable attention and scrutiny from lawmakers in the Legislative Council.

Legislator Peter Tang raised concerns during a Council meeting on the 22nd, probing into the miscellaneous expenses incurred by the office on a monthly basis, such as management fees, cleaning services, and electricity bills, which collectively amount to nearly HK$100,000 per month.

Under the current policy, all former Chief Executives are entitled to support and other lifelong benefits, including the provision of appropriate office space and administrative support for carrying out promotional and ceremonial duties on behalf of Hong Kong.

Due to the limited space at the Central Mid-Levels Ex-Chief Executive Office, where the first three former Chief Executives were accommodated, it was insufficient to accommodate Carrie Lam following her departure in July 2022. As a result, the government rented premium office space at Pacific Place in Admiralty for Carrie Lam to set up her personal Ex-Chief Executive Office, leading to controversies over the high cost involved. The disclosed revision of the office’s annual operating budget for 2023/24 stood at HK$9.17 million, a substantial increase of 32% compared to the previous year.

Legislator Peter Tang, who has been closely monitoring the situation, submitted multiple queries during the Council meeting today. He highlighted discrepancies in the rental expenses, indicating that the total costs, including related expenditures, amounted to HK$5.67 million for the 2023-2024 fiscal year, translating to an average of HK$472,500 per month, an increase of HK$95,500 from the previous year’s net rental expense of HK$377,000 per month.

Upon reviewing records, Chief Secretary for Administration, Julie Ng, mentioned during a special meeting of the Finance Committee in April this year that there had been no rent hike for Carrie Lam’s Ex-Chief Executive Office. By comparing the budget figures between the two years, it was evident that the “related expenditures” for the last fiscal year (2023-2024) besides the rental fees amounted to nearly HK$955,500 per month, close to HK$100,000.

In a written response, Secretary for Home Affairs, John Chan, revealed that the monthly non-rental expenses nearing HK$100,000 include management fees, cleaning services, and electricity charges. The government pledged to assess the lease arrangement for the office in due course.

Peter Tang criticized the government for evading direct answers regarding the decision-maker behind the choice of leasing private commercial buildings for the former Chief Executive’s office, labeling their responses as being evasive and lacking transparency. He suggested that since the office of the first Chief Executive, Tung Chee-hwa, had remained vacant for a period, it would be logical for Carrie Lam to move in once the lease agreement concludes.

During a Finance Committee meeting in April, Julie Ng mentioned that Carrie Lam had participated in over 700 promotional or ceremonial activities since stepping down as Chief Executive. The proposal for implementing Key Performance Indicators (KPIs) by New People’s Party member James Li to monitor the usage of the former Chief Executive’s office was rejected. Ng argued against using hard benchmarks as evaluation criteria, emphasizing the need to provide appropriate status and respect for former Chief Executives after leaving office, as similar arrangements are observed in other parts of the world.