“Jumbo Kingdom” sinking: why insurance fraud is suspected

The sinking of the “Jumbo Kingdom”, the largest restaurant ship in the world, is heating up tempers in Hong Kong. Above all, the operator is criticized, but also Prime Minister Carrie Lam.

“Jumbo Kingdom” was a sight in the port of Hong Kong’s Aberdeen district: several stories high, 80 meters long and designed in the style of imperial China, the restaurant ship towered above the many other ships in the port. 2300 seats made it the largest restaurant ship in the world and made the sister ship, the neighboring “Tai Pak”, look old. But after 46 years, the ship is now lying on the seabed in the South China Sea. During a towing trip, it capsized just off the Parcel Islands and sank. The ship had accumulated increasing debts since 2013 and had been closed since the beginning of the corona pandemic in March 2020.

It is not yet clear why the ship sank. Hong Kong’s port authority asked the ship’s operators to submit a detailed report. According to the operator, the restaurant ship sank in a severe storm in the sea. Water entered the ship and caused it to tilt. The two tugs tried to correct the course, but without success – the ship is now at a depth of 1000 meters. According to the “South China Morning Post” (SCMP), however, there was only moderate wind with a few gusts. In addition, there would have been smaller thunderstorms and waves of up to three meters. However, the gusts could have had a significant impact on the ship. The large structure of such a ship can be easily affected by the wind, Stephen Liy Yiu-Kwong, a professor of marine studies at the Polytechnic University, told the newspaper.

“Jumbo Kingdom”: smugglers already involved in another incident

For one of the smugglers, the “Jaewon 9”, it is the second accident in six months. According to the Hong Kong Free Press, the connection between the two companions broke in December last year when an offshore platform was being towed. The platform washed ashore on a small island off Taiwan a day later and was abandoned.

According to the “South China Morning Post”, the port authority was upset by the fact that they only found out about the sinking when the operators reported it. Timothy Chui Ting-Pong, chairman of the Hong Kong Tourism Authority, called for an investigation into whether the port authority knew of the ship’s destination and route, according to The Standard. It must be clarified whether the risk of sinking was known in advance. According to the port authority, however, extensive work was carried out on the ship for the crossing before it was transported out of the port on June 14. Only then was the permit for the crossing issued. The destination of the trip was Cambodia.

The extent of the damage caused by the sinking of the “Jumbo Kingdom” remains unclear, as does the cause of the accident. Aberdeen Restaurant Enterprises, the ship’s operating company, did not provide any information about the amount – also a request from the star remained unanswered. Citing insurance experts, the SCMP reported on Wednesday that the ship’s operators could probably make insurance claims – if the ship was insured. The report of a possible insurance claim fueled rumors in Hong Kong that the ship, which had been making losses for years, had been sunk on purpose. According to MP Chang Pui-Leung, the compensation could be either the market value or the cost of the salvage. However, the market value of the ship in particular is very difficult to determine. Stephen Li-Yiu-Kwong told the SCMP that while salvage is possible, it will cost more than 1.2 million euros. Since the ship is in international waters, the “Jumbo Kingdom” does not have to be salvaged.

However, whether the ship was insured for transport is questionable. “The ship is very old and due to its complex structure, it offers many surfaces for the wind to attack. On a long journey, the risk of something happening is very high,” emphasized Chang Pui-Leung. He doubts that the ship was insured. It is more likely that the “Jumbo Kingdom” will simply be abandoned given the cost of a salvage.

Insurance companies want to examine sinking thoroughly

But even in the case of insurance, this is not paid out immediately. Hong Kong Insurance Association chairwoman Selina Lau Pui-Ling told the SCMP that experts will study the case before making a decision. “The investigation will also consider whether human error led to the tragedy. If the ‘Jumbo Kingdom’ was caused to sink intentionally, that would be a punishable offence.”

But there is also criticism of Hong Kong Prime Minister Carrie Lam. In a government speech in autumn 2020, they announced that the port district in Aberdeen should be upgraded. The Southern Island Revitalization project included several key assets, including the Jumbo Kingdom. The aim is to revive the ship as it is a historic landmark in the city. The basis is the cooperation between the operators and Ocean Park, an amusement park in southern Hong Kong. The “Jumbo Kingdom” operators had agreed at the time of an agreement to let the ship to the amusement park free of charge. The plan was to turn the “Jumbo Kingdom” into a tourist attraction in the southern district on a non-profit basis. According to the Hong Kong Free Press, the government provided over 100 million euros in funding for the entire project.

On June 14, the "Jumbo Kingdom" towed from Aberdeen Harbour.

Departure for the last voyage: On June 14, the “Jumbo Kingdom” is towed out of the port of Aberdeen. She sank a few days later.

© Dickson Lee/ / Picture Alliance

Carrie Lam pledged support for Jumbo Kingdom

In late May, when Aberdeen Restaurant Enterprises announced plans to ship the “Jumbo Kingdom” into a shipyard, it was revealed that Ocean Park had turned down the ship project, the report says. Carrie Lam then explained on Tuesday that they never had the plan to invest money in the ship because “the government has no experience of running a place like this”. It is not practical to promote the ship. “For many residents, this is a great loss because part of the collective memory is being erased,” activist Oscar Lai criticized for the government’s lack of support in the “Financial Times”.

According to the Financial Times, this isn’t the first time the government has dropped a project. In 2008, Queen’s Pier was demolished despite widespread public protests. The pier was not only open to the public, but also important for ceremonies: all Hong Kong heads of government have landed at the pier since 1925, and Queen Elizabeth II and Prince Charles also went ashore at the pier during their visits to the then British protectorate. The government promised to rebuild the pier elsewhere, but 14 years later that still hasn’t happened. At the time, the promise of reconstruction was made by the Minister for Development, Carrie Lam.

Sources: South China Morning Post (paid content), Financial Times, Hong Kong Free Press, The Standard

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