Retired Cardinal Joseph Zen, 4 others lose appeal over failure to register defence fund

Retired Catholic leader Joseph Zen Ze-kiun and four other activists have lost their appeal regarding a conviction for not registering their legal defence fund, which was established to support those involved in the 2019 anti-government protests in Hong Kong. The Court of Appeal upheld the magistrate’s decision that the now-defunct 612 Humanitarian Relief Fund, which was later dissolved, constituted a society under the Societies Ordinance.

Members were required to register the group with police or seek an exemption. The court deemed the registration scheme constitutional and did not consider it an overly burdensome requirement on the right to freedom of association. The three presiding judges determined that the fund was more than a simple trust, as those who managed it were held accountable by two trust deeds outlining their mutual rights and responsibilities.

Zen, who was 94 years old at the time, served as the fund’s trustee alongside singer Denise Ho, former Lingnan University academic Hui Po-keung, and ex-opposition lawmakers Margaret Ng and Cyd Ho. Each of the five defendants was fined HK$4,000 (approximately US$510) following a trial in 2022. The sixth defendant, Sze Ching-wee, who served as the fund’s secretary, did not appeal his conviction or the HK$2,500 fine.

The investigation, conducted by Hong Kong’s national security department, was initiated in response to allegations that the group colluded with foreign entities to impose sanctions on Hong Kong. Although no charges have been formally filed, authorities have confiscated the travel documents of those involved. The Societies Ordinance mandates that local organizations must register with the societies officer—typically the police commissioner—within one month of their formation, otherwise, organizers could face a HK$10,000 fine upon their first conviction.

Prosecutors revealed that the fund received nearly 100,000 donations totaling HK$270 million between June 2019 and October 2021, with some of the funds allocated to subsidize anti-government protest organizers, international lobbyists, and foreign organizations hostile to Beijing. Subsidies were extended to entities such as the now-defunct Civil Human Rights Front, the Taiwan-based Judicial Reform Foundation, and the pro-independence New Hong Kong Cultural Club, which was founded by Hongkongers in Canada.

The involvement of foreign entities was uncovered when police utilized the national security law's implementation rules to obtain information, including donor and recipient details, from the five trustees. The case also prompted internal investigations by Hong Kong’s legal professional bodies following complaints from national security police about "suspected misconduct by solicitors and barristers" in accepting payments from the fund.

The Hong Kong Bar Association cleared 38 barristers accused of improperly accepting funds but advised four members regarding "technical" infractions for failing to maintain necessary documentation. The Law Society of Hong Kong issued "warning or closing letters" to several members due to perceived compromises or impairment of their integrity and the professional body’s reputation, though the exact number of affected lawyers was not disclosed.

The government has proposed new regulations for crowdfunding, mandating that anyone seeking to collect public donations must apply for authorization, although pressure groups have expressed concerns that such measures could jeopardize the sustainability of their operations.