I almost spat my Cheerios across the kitchen this morning when I read this in the SCMP:

The Legislative Council commission has decided to invest up to HK$10 million in the Link - the Housing Authority's controversial real estate investment trust - because it believes the deal is a bargain...The 13 member commission, an independent statutory body that support's [sic] Legco's operations thruogh the council's secretariat, comprises legislators from various parties and is chaired by Legco President Rita Fan.

"Some legislators have repeatedly said the trust will be sold at a knockdown price. That means it will be a very good deal," she said.

With Legco's workload like to increase, the more the commission could on on investments the better services it could provide Legco members and the public, Mrs Fan said.

The commission has reserves of HK$160 million, three-quarters of it held in bank time-deposits with the balance invested in financial markets. Mrs Fan said it had been the establish practice for the comission to nivest in bonds with high stability and good returns.

1. Why are legislators investing taxpayer money in the Link REIT? It is effectively paying itself. If normal practice, according to Rita Fan, is to invest in bonds, why suddenly invest in Link? Mrs. Fan says it is because Link has bought its assets cheaply. That's great for the IPO. It's not so great for the Government-owned Housing Authority that is selling the assets. Mrs. Fan is confirming the widely held view that the Housing Authority is selling these assets for below their fair value. That's a scandal.

2. Why does Legco have a financial reserve of HK$160 million? Normally running costs would be paid of out of revenue on an ongonig basis. Any money saved should be returned to those who paid it in the first place: the taxpayer. Giving Legco an investment fund make absolutely no sense. If extra funds are needed to provide better services, pay for them through the budget. That's a scandal.

3. Why are our esteemed Legco politicians investing any public money at all? There is a massive conflict of interest. If Legco must have a financial reserve it needs to be managed by an independent advisor at arms-length from the Legco. Having 12 legislators on the investment panel borders on unethical. That's a scandal.

Will we hear more about this? I doubt it. That's a scandal, too.