Monday 22nd November 2010

Dear Reader,

GOME chairman admits: we lied
Electrical retailer GOME, having reached a truce with jailed founder and controlling shareholder Wong Kwong Yu, now puts itself back in the spotlight by Chairman Chen Xiao's confession that it lied to investors in Dec-2008 about the state of affairs of the group. That's a criminal offence. We call on the SFC to investigate. (22-Nov-2010)

Mucking Out the Jockey Club
We look at the structural incentive for corruption in membership admission to HKJC, and its small-circle voting system, highlighted by yesterday's arrest of 3 of the 200 Voting Members. If private clubs wish to avoid the reputational risk of corruption, then they should adopt tender-based admission systems to remove the incentive and capture full value for their members. (18-Nov-2010)

Your ID number is not a password
There is a common misconception that HK identity card numbers are secrets, a misconception that Government is promoting by its policy actions, putting us on the road to increased abuse of the HKID and higher economic losses from fraud. To prevent this, the register of ID numbers and names should be published, after a transition to allow commercial abusers to stop abusing the ID for authentication. This article also looks at the unfulfilled potential of the Smart ID Card, including biometric authentication and electronic money. (8-Nov-2010)

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