HK furore adds to Tung's woes

Mr Leung has already offered to resign over the affair

Hong Kong's Justice Department is considering whether to prosecute the territory's financial chief, Antony Leung, who bought a luxury car in February just weeks before he upped the tax on new vehicles.

The report on Mr Leung's controversial purchase was drawn up by Hong Kong's Independent Commission Against Corruption, after the incident provoked widespread public criticism.

The furore has resurfaced at a time when there is already intense pressure on Hong Kong's Chief Executive, Tung Chee-hwa, over his failure to listen to public concerns.

Mr Tung was recently forced to delay the legal passage of an anti-subversion bill, after half a million people took part in a protest on 1 July claiming the bill was a threat to their political and religious freedoms.

Mr Tung is also under pressure from Beijing, which resumed sovereignty of Hong Kong from Britain in 1997.

Beijing's top representative to the territory, Gao Siren, said on Wednesday that continued opposition to the anti-subversion bill would harm the economy.

"Hong Kong is a city of business, not of politics," he told the China Daily, a state-run Chinese newspaper.

"If Hong Kong is over-politicised, it will be bad for social stability," he said.

'Oversight'

Mr Leung bought his new Lexus car in January, before raising taxes on luxury vehicles in March, thus saving himself HK$190,000 (US$24,359).

At the time, he was heavily criticised for what he referred to as an honest oversight, made in preparation for the birth of his baby.

He sought to make amends soon after the scandal surfaced by donating twice the amount he had saved - HK$380,000 ($48,700) - to charity.

He also offered his resignation. Mr Tung only reprimanded him for "serious negligence", and Mr Leung remained in office.

But now Mr Tung himself is facing the biggest political crisis of his career.

There have been repeated calls for his own resignation, or at least a major government shake-up.

Analysts say that Mr Tung may use the Antony Leung affair as an excuse to reshuffle his Cabinet to score points with a disgruntled public.