Four Hong Kong firms caught up in a fraud case involving former Italian prime minister Silvio Berlusconi were given the go-ahead yesterday to apply to the High Court for permission to cross-examine prosecutors in Italy.
They claim the prosecutors illegally searched their offices last year.
The Court of Appeal turned down the government's appeal against an earlier ruling by Mr Justice John Saunders that the High Court had jurisdiction to issue a letter requesting the Italian authorities allow counsel for the companies to cross-examine Fabio De Pasquale and his team.
In January last year, under mutual legal assistance granted by the Hong Kong government, the Italian prosecutors searched and seized materials from Harmony Gold, Wilshire Trading, CS Secretaries, and Loong Po Management. They also searched the homes of Harmony Gold directors Paddy Chan Mei-yiu and Katherine Hsu May-chun.
The search was made in connection with a continuing investigation into alleged tax fraud, embezzlement and false accounting by Berlusconi.
The companies alleged the team misled the secretary for justice and Hong Kong police by exaggerating the gravity of the alleged offences and the amount of money involved. The prosecutors have refused to come to Hong Kong to testify.
