The Democratic Party (DP) has set up a three-man committee to investigate the allegation that member James To Kun-sun used public funds to rent a property he had an interest in at an above-the-market-level rent.

In a press conference yesterday, Law Chi-kwong, the party's election campaign spokesman, said the party will also take this opportunity to examine if other legislators and district councillors of the party are doing the same thing.

The committee is composed of people within and outside the party -- DP veteran Szeto Wah and two independent legal and accounting professionals whose identities are to be confirmed.

To has been accused of failing to declare to the Legislative Council Secretariat his ownership of 50 per cent of a company -- Target Link Limited -- which the party formed in 1997 to buy the property planned to be used as the party's Kowloon West regional office.

The purchase was made through the company for the purpose of securing a mortgage. To rented the premises as his own office during his previous tenure as Legislative Councillor from 1998 to 2000.

Law said that the shareholdings of the property in question are now clarified as 100 shares, with To and party colleague Stanley Ng each holding 50 shares. These shares are understood to be held in trust by the duo for the party.

An amendment has now to be made and a further declaration of interest will be submitted to the LegCo Secretariat, Law said.

Law also said that since someone had reported the case to the Independent Commission Against Corruption, the party and To would fully co-operate with the graftbuster if and whenever required.

On a separate occasion, To said he would hire a professional surveyor to evaluate the rents of the said property within the relevant period, and vowed to return the difference if the rents paid were higher than market value.

Ricky Fung, secretary-general of the Legislative Council, said there is currently no rule that prevents members from renting properties of their own or of their political parties.

Nor will the Secretariat intervene in the rent levels of their offices because he believes members will be very cautious with taxpayers' money.

"In view of widespread concern, we will consider setting up a mechanism for reference purposes to see whether rents claimed by members are reasonable," he said on a Commercial Radio programme.

(China Daily HK Edition August 25, 2004)