Tung Chee Hwa - Resignation

Resignation

Tung's reputation suffered further damage when Hu Jintao gave him a humiliating public dressing-down for poor governance in December 2004. Official sources specifically cited the poor handling of the Link REIT listing, the West Kowloon cultural project, the Hung Hom flats episode. Tung himself denied it was a dressing-down, and insisted that he retained the President's support, although he and the rest of the government were asked to examine their past inadequacies. Hu's words, however, were thinly veiled criticism. Nevertheless, in his January 2005 Policy Address, Tung gave a rather critical verdict on his own performance.

The speculation which was running rife in the weeks in the run-up to his actual resignation, and its intensity, continued to perpetuate the impression of Tung's "weakness" and "confusion". Prior to Tung's resignation, in mid-February Stanley Ho, a tycoon with close ties with Beijing, had already commented on the possible candidates for the next Chief Executive and personally endorsed Donald Tsang. This started rumours that Tung would be nominated to the election of vice chairman of Chinese People's Political Consultative Conference (CPPCC) of the PRC. On the night of 27 February 2005, it was revealed that he and nine other persons would be appointed as new members to the CPPCC. All the local newspapers, except for the three controlled by the PRC government, namely Ta Kung Pao, Wen Wei Po and Hong Kong Commercial Daily, went to the presses preemptively on the morning of 2 March with the headline "Tung Resigns". Tung declined to comment when questioned by journalists waiting at the government headquarters.

On 10 March 2005, Tung assembled a press conference at the Central Government Offices and announced that he had tendered his resignation due to "health problems". After flying to Beijing on 11 March, Tung was elected Vice Chairman of the Chinese People's Political Consultative Conference (CPPCC) on 12 March 2005, the last day of CPPCC annual meeting.

His resignation sparked a constitutional debate of whether his successor should fill his remaining term of two years, or start a new term of five years. Tung was mostly chosen by the PRC due to his business background as well as owing Beijing for saving him from bankruptcy with a US$100 million loan. In addition Tung wanted to see Hong Kong modelled after Singapore.