Next Digital Ltd and Apple Daily logos are display at the headquarters in Hong Kong, June 17, 2021. Photo: VCG

The Security Bureau of Hong Kong Special Administrative Region criticized Next Digital, a media company founded and run by separatist Jimmy Lai, for smearing the national security law for Hong Kong, after the company announced on Sunday that all its board members have resigned and blamed the law enforcement authorities for the "forced" decision. 

The Security Bureau said in a statement issued on Monday night that there was no such thing as Next Digital being "forced into liquidation" due to a lack of funds arising from law enforcement actions. It said the media company was trying to shift the responsibility by blaming the law enforcement authorities and maliciously smearing the national security law. 

Next Digital announced on Sunday the resignation of all the remaining four board members. It blamed the national security law for Hong Kong, saying the law could force the company into liquidation without court intervention. 

In response, the Security Bureau said that the board members of Next Digital had made a series of misleading statements at their resignation and it was necessary to clarify key facts to prevent the public from being misled. 

It noted that the prosecution and other enforcement actions were initiated on the basis of evidence and in strict accordance with the law. The prosecution case was clearly set out in the written allegations submitted to the court and presented to the defendant. It is the prevailing arrangement in criminal proceedings to disclose the prosecution case only to the defendants during the stage of mention hearing, and not to the public. 

It said the company cannot be "forced into liquidation" due to lack of operation funds as a result of "enforcement action" as it had stated in an announcement in May that the group had sufficient liquidity to cope with its operation for 18 months from April onwards and said in July that the company had repaid a loan of HK$150 million to its former chairman and major shareholder in April ahead of schedule. 

A number of executives of Next Digital have been arrested by Hong Kong police on suspicion of national security violations. Jimmy Lai, founder of the company, is currently serving a jail term and facing multiple national security charges.

Global Times