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Lai Ying Kit

Last updated at 6.32pm:
KCRC acting chief executive Samuel Lai Man-hay ? who has been at the centre of a management feud within the rail operator ? announced his resignation on Thursday.

Mr Lai revealed his decision to leave the Kowloon-Canton Railway Corporation (KCRC) a day after the other company head involved in the dispute, chairman Michael Tien Puk-sun, withdrew his resignation.

He told reporters on Thursday morning the KCRC managing board had accepted his resignation. He said he had not been pressured into stepping down and his resignation reflected a spirit of accountability.

Mr Lai also said he had not resigned because he was unwilling to work with Mr Tien.

?It was not a matter of two people rivaling each other,? he explained.
 
Mr Lai said he had no regrets about having sent a letter to the board to complain about the KCRC?s governance problems.

Mr Lai was referring to the letter he wrote to the board last Thursday. In the letter, he said reforms pursued by Mr Tien had alienated KCRC staff and he could no longer work with Mr Tien for the corporation?s benefit.

His move, which won support from more than 20 senior managers and about 4,000 employees, prompted Mr Tien to submit his resignation to Chief Executive Donald Tsang Yam-kuen on Sunday.

?My initiative was to do what I think I ought to do. . . .  Now, that problem has been resolved,? Mr Lai said.
 
Among 20 senior managers backing Samuel Lai, general manager Michael Lai Kai-hin has had his employment contract terminated with immediate effect.

The managers, led by Michael Lai, appeared at a media briefing on Tuesday in support of Samuel Lai, minutes before board members met to discuss Mr Tien?s resignation.

Secretary for Environment, Transport and Works Sarah Liao Sau-tung said the 19 managers would receive warning letters for their involvement.

She added that they would be sacked if they repeated similar acts within a year.

?The board unanimously concluded that the act by the senior managers that day seriously hurt KCRC?s image as a responsible and disciplined public organisation,? Dr Liao said.
 
Michael Lai said he felt his being sacked came too suddenly. He said he might seek legal advice to decide what to do next.

Thursday?s developments are the latest in a saga involving a management feud which has been plaguing the KCRC.

Although Mr Tien and Mr Lai vowed to co-operate and shook hands at a media session on Wednesday, industry sources had predicted the management crisis was far from over.
 
The corporation?s woes had also prompted the Chief Executive to step in. Mr Tsang met Mr Tien and Mr Lai separately on Wednesday to help resolve the dispute.

Since taking office in 2001, Mr Tien alienated some of his colleagues by pursuing controversial reforms intended to introduce a culture of transparency and accountability.

In recent months, the company has been plagued by a series of problems, such as the discoveries of fractures in train parts. Some rail staff have said their morale was low. They also complained that the internal reforms placed a considerable burden on them.

KCRC is one of the two rail operators in Hong Kong. It is wholly owned by the government and has two railways linking Kowloon and the New Territories.



KCRC acting chief executive Samuel Lai resigns