Scandal-hit MTR Announces New Leadership

The MTR Corporation announced on Thursday that Rex Au Yeung, the head of Lingnan University’s governing council, will become its new chairman, taking over the role from incumbent Frederick Ma from July.

Meanwhile, Dr Jacob Kam, the firm's current managing director, will become CEO from April, taking over from Lincoln Leong.

Leong announced in August last year that he would take early retirement, after a scandal blew up over construction flaws at Hung Hom MTR Station.

The government had demanded that heads roll, and while projects director Philco Wong and three other general managers resigned on the spot, Ma said he would be staying on until the railway company found his successor.

The man appointed, Au Yeung, had previously headed the Asian branch of a US-based investment management company.

The appointments were confirmed during the the corporation's results announcement, where it said it posted a 4.9-percent fall in annual net profit last year at just over HK$16 billion.

Speaking to reporters, Leong said he has confidence in his successor's ability to lead the corporation.

"Jacob, as you all know, has extensive experience at the MTR. He is well respected by all our colleagues. Jacob has been in senior leadership roles for many years and has significant achievements," he said.

The government set up a judge-led inquiry to look into claims of substandard work at Hung Hom Station, and in particular whether steel support bars were cut short.

The inquiry wrapped up its work recently, but was then asked to look into new concerns regarding two approach tunnels and a set of secondary tracks, including unapproved design changes and missing building records.