The government has the right to disqualify and terminate the lease agreement for land sales and national security clauses (09:53) – 20230213 – Instant Financial News

According to the data from the Lands Department, starting from the sites 4, 5B and 10 in Area 2A, Kai Tak, which started bidding on November 4, 2022, a number of official lands have been launched so far, including Cape Road in Stanley, and the Tsuen Wan Po, which is under tender. For Fenglu Road, Mongkok Sai Yee Street land, etc., new clauses have been added, mentioning that the government reserves the right to disqualify voters or their parent companies for activities that threaten national security.

As for other short-term lease sites, including the concrete plant site in Tseung Kwan O Area 137 that just closed at the end of last month, the authorities have the right to disqualify the bidders on the grounds of national security. Acts in the interests of security also have the right to terminate the lease.

The Development Bureau responded that the government’s internal “Material Supply and Procurement Regulations” (“Regulations”) was updated on August 29, 2022, adding relevant requirements for maintaining national security laws, making the guidelines clearer, and the relevant principles apply to all types and forms of government procurement, and the Lands Department subsequently incorporates the applicable clauses into all land sale documents and short-term tenancy tender documents accordingly.

The report also pointed out that as far as short-term leases are concerned, the government may also consider terminating the contract due to national security, because the government leases government land to the successful bidder as a landlord, and the purchase contract relationship between the government and the successful bidder is during the lease period Continuously valid.

The term of termination of the contract during the contract period does not apply to the sale of land by the government, because the sale of land by the government is a sale of land by the government. After the completion of the bidding process and the signing of the land documents, the land sold to the winning bidder is private property. There is no longer a purchase contract relationship. If it involves a criminal act that endangers national security, the law enforcement agency will deal with it according to law.

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