Loophole Leaves Some Eatery Owners Starved For Funds

A group of restaurant owners and staff said on Tuesday that a loophole in the government’s anti-pandemic relief package has prevented them from getting the much-needed aid while allowing the money to go to those who shouldn’t get it.

The government has rolled out two rounds of relief measures to help struggling businesses, including handing out hundreds of thousands of dollars under its HK$137.5 billion anti-epidemic relief measure to help local establishments during the economic downturn.

But a group of restaurant owners said the handouts have been given to the licensees – some of whom no longer have anything to do with the businesses under their names.

Many restaurant owners never bother to go through the administrative hassle of changing the names of the licensee, they say.

The owners want the government to distribute the funds using the business registration certificates of restaurants, so the actual operators are given the money.

If both the licensee and the operator apply for the money, whoever who can show more documents – like the salary payment records, or their leases – should get the cash, the group said.

Chiu, the owner of two restaurants, said the licensee of his establishments was a long-time friend who isn't involved in his business at all. But the person pocketed HK$300,000 paid by the government as aid, he said.

He said he had lost around HK$1 million over the past few months because of the economic slump triggered by the pandemic and he was borrowing money to pay salaries.

Chiu said he had written to various departments for help but has not received any positive response.

Another owner of a restaurant, surnamed Kong, said he his restaurant shut down in April because of the pandemic. He said the former owner of the restaurant, who holds the restaurant licence, took the HK$80,000 paid by the government as aid.

Democratic Party lawmaker Helena Wong, who is helping the group, said it’s common practice for restaurants owners not to be the license holder of their establishments.

She said they have repeatedly asked the government to fix the loophole in the schemes, but it has refused to take any action.

“We urge the government to fix this loophole so that for this second round of funding applications, that both the licensee as well as the operator can also apply for this funding,” she said.

Then the public money can be allocated to those who are in actual need of the support, said the opposition lawmaker.