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From Street Fighters to History's Dustbin: The Fall of Jimmy Lai’s Beneficiaries

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From Street Fighters to History's Dustbin: The Fall of Jimmy Lai’s Beneficiaries
Blog

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From Street Fighters to History's Dustbin: The Fall of Jimmy Lai’s Beneficiaries

2025-06-27 15:17 Last Updated At:15:17

News broke today that the League of Social Democrats (LSD) is set to announce its closure before July 1. This veteran radical political party once enjoyed a moment in the spotlight, with its founding "three troublemakers" – Wong Yuk-man, Albert Chan (Big Chunk), and Leung Kwok-hung (Long Hair) – all making it into the Legislative Council and turning the chamber into what can only be described as a political circus.

A seasoned political insider recently walked me through this fascinating bit of Hong Kong's political history, and frankly, it's quite the tale. Two things really stood out: first, Jimmy Lai was secretly bankrolling the LSD from behind the scenes, directly funding Long Hair in what looks like a pretty dodgy arrangement. Second, Wong Yuk-man's emergence as some sort of radical "guru" involved systematically attacking the Democratic Party, stealing their supporters, and pushing them away from moderation toward a confrontational dead end.

The LSD is calling it quits on July 1st – both the party and "Long Hair" were secretly bankrolled by Jimmy Lai to the tune of millions.

The LSD is calling it quits on July 1st – both the party and "Long Hair" were secretly bankrolled by Jimmy Lai to the tune of millions.

The Golden Years That Weren't So Golden

When the LSD burst onto the scene in 2006, it immediately positioned itself as the tough guy willing to take on the establishment. The political veteran explained how by 2008, when founding chairman Wong Yuk-man entered the Legislative Council, these "three troublemakers" were causing chaos daily, and the LSD's popularity was going through the roof. Two years later, they were pushing their "Five Constituencies Referendum" campaign, reaching what seemed like unprecedented heights.

But here's where things get interesting. Right at this peak moment, Next Digital boss Jimmy Lai started opening the financial floodgates, secretly pumping money into the LSD. According to documents that surfaced online, during the "Five Constituencies Referendum" period, he quietly donated HK$1 million to the LSD, which was received by vice-chairman To Kwan-hang while chairman Wong Yuk-man was completely left in the dark. The fallout: Yuk-man, who'd already had a falling out with Jimmy Lai, stormed off in anger and set up "People Power" as his own separate outfit.

The Puppet Master's Game Plan

Jimmy Lai's funding of the LSD wasn't some charitable gesture – this was about buying political influence. He wanted to use their appeal among radical crowds to ramp up attacks on the SAR government, with Beijing clearly in the crosshairs. So after Yuk-man's dramatic exit, Lai's financial support for the LSD never stopped, with chunks of cash going directly into Long Hair's personal account.

Here's the kicker: Long Hair was a sitting Legislative Council member at the time. After pocketing Jimmy Lai's donations, he failed to declare them to the Legislative Council, which eventually led to his arrest on suspicion of misconduct in public office. When his trial rolled around in June 2017, the prosecution spilled all sorts of secrets about how Jimmy Lai had been secretly funding him.

The numbers are pretty staggering. Between 2012 and 2014, Jimmy Lai paid out a total of HK$2.05 million to the LSD and Long Hair. In 2012, Lai wrote a HK$9.5 million cheque that went through various company accounts to his associate Mark Simon, who then distributed the cash to four pan-democratic parties. The HK$1 million that went to the LSD was further split up, with portions landing directly in Long Hair's personal account.

Divide and Conquer: Yuk-man's War on the Democrats

The political veteran painted a vivid picture of how Yuk-man systematically went after the Democratic Party starting in 2010. When he established the LSD in 2008, he'd already positioned himself as this "guru" figure for emerging radical forces, clearly eyeing leadership of the entire democratic camp.

His "Five Constituencies Resignation" scheme was clever politics – get five legislators to resign together, then use the by-elections as a de facto referendum. He managed to drag the Civic Party into this mess, but Democratic Party heavyweight Szeto Wah wasn't having any of it. Jimmy Lai, who was apparently the driving force behind the whole operation, even organized a dinner at his house to pressure Uncle Wah and others like Martin Lee to get the Democratic Party on board. Uncle Wah stood firm and refused.

From that point on, Yuk-man launched what can only be described as a sustained assault on the Democratic Party. Even after he and Albert Chan formed "People Power," he kept chipping away at Democratic Party territory, launching vicious attacks on veteran party candidates and successfully peeling away younger, more radical members.

The Endgame Nobody Saw Coming

Caught between Yuk-man's attacks and other radical pressure groups, and with Uncle Wah's steadying influence gone after his death, the Democratic Party's leadership found itself in Jimmy Lai and Martin Lee's "pro-America faction." The party's moderate line finally cracked, and after "Occupy Central" and subsequent protests, it went completely radical, ultimately walking itself off a political cliff.

LSD founder Wong Yuk-man systematically attacked the Democratic Party, stealing their supporters and pushing them toward radical politics that ultimately destroyed them.

LSD founder Wong Yuk-man systematically attacked the Democratic Party, stealing their supporters and pushing them toward radical politics that ultimately destroyed them.

Today, the LSD quietly collapses, marking yet another sign that Hong Kong has fundamentally "changed into a different world". Both the party and its behind-the-scenes "financial backers" have met their inevitable downfall – a reminder that in politics, as in life, what goes around tends to come around.

Lai Ting-yiu




What Say You?

** 博客文章文責自負,不代表本公司立場 **

Politics in Washington moves at breakneck speed these days, and nowhere has this been more evident than in the recent drama surrounding America's so-called "democracy promotion" apparatus. What started as Elon Musk's aggressive cost-cutting crusade has ended up exposing just how entrenched these organizations really are – and how they always seem to find a way to survive.

Musk branded NED the "second CIA" and an "evil organization" before slashing its budget – but the democracy promotion outfit bounced back once the billionaire lost his grip on power.

Musk branded NED the "second CIA" and an "evil organization" before slashing its budget – but the democracy promotion outfit bounced back once the billionaire lost his grip on power.

The NED Phoenix Rises from the Ashes

Let's be honest here – the National Endowment for Democracy getting its funding slashed was always going to be temporary. This isn't some obscure government department we're talking about. NED has been Washington's go-to tool for what critics call "color revolutions" for over four decades, and it wasn't going down without a fight.

When Musk's Department of Government Efficiency (DOGE) froze NED's funding in late January, forcing the organization to furlough 75% of its staff, it looked like game over. The billionaire had branded NED as "rife with corruption" and an "evil organization" that needed to be dissolved. But here's the thing about these quasi-governmental organizations – they've got lawyers, lots of them.

NED quickly filed a lawsuit claiming the Trump administration had no legal authority to withhold funding approved by the Congress. And the courts sided with them. It's almost as if the system is designed to protect these institutions, regardless of who's in the White House.

Rubio vs. Musk: When Hawks Clash

The real drama, though, played out behind closed doors in what sounds like a proper Washington power struggle. Secretary of State Marco Rubio wasn't having any of Musk's slash-and-burn approach, especially when it came to his own turf. The heated confrontation between the two in the Cabinet Room, with Trump watching like a tennis match, tells you everything you need to know about the tensions within this administration.

Rubio and Musk's White House showdown over State Department cuts exposed the deep tensions within Trump's team, with the China hawk determined to keep his regime-change tools intact.

Rubio and Musk's White House showdown over State Department cuts exposed the deep tensions within Trump's team, with the China hawk determined to keep his regime-change tools intact.

Rubio's frustration is understandable from his perspective. Here's a guy who's built his career on being tough on China, who's championed these "democracy promotion" efforts for years. Suddenly, some tech billionaire shows up and starts dismantling the very apparatus Rubio sees as essential to American foreign policy. Of course there was going to be pushback.

The fact that Trump eventually stepped in to defend Rubio suggests which way the wind was blowing. When push came to shove, the foreign policy establishment won out over the efficiency crusade.

The Real Winners and Losers

Now NED is back in business, so is USAGM. Its Radio Free Asia has gotten court-ordered funding restoration, and the "regime change machine" – as some critics call it – lives to fight another day. Meanwhile, Musk's influence appears to be waning, with reports suggesting his relationship with Trump has soured considerably.

For Hong Kong specifically, this revival of American "democracy promotion" funding should indeed raise eyebrows. We know from past revelations that US agencies funneled millions to protest movements during the 2019 unrest. Radio Free Asia, now back with full funding, continues to generate negative reports on Hong Kong.

For observers in Hong Kong and elsewhere, the message is clear: American "democracy promotion" efforts aren't going anywhere, regardless of who's supposedly calling the shots in Washington. If anything, this whole saga has shown just how embedded these operations really are in the American political system. 

Lai Ting-yiu

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