Hong Kong orders probe into procurement processes amid bottled water scandal
Lawmaker says authorities ‘flustered and panicking’ amid accusations supplier of bottled water to government offices used brand without permission
Hong Kong authorities have ordered an investigation and set up a task force to review official procurement processes after a company supplied bottled water that listed a mainland Chinese brand as a manufacturer without its permission.
The Financial Services and the Treasury Bureau outlined its plan on Sunday, a day after the Government Logistics Department partially terminated a HK$52.9 million deal with bottled water supplier Xin Ding Xin Trade because it doubted whether the company was capable of fulfilling the three-year contract.
The Post also found that the company’s directors were linked to unpaid loans of HK$8 million via another firm under their name.
“I have invited the Audit Commission to scrutinise the tender and founded a task force with other departments and bureaus to comprehensively review the existing procurement mechanisms,” said Christopher Hui Ching-yu, the secretary for financial services and the treasury.
The task force, which will also involve the development, civil service, and commerce and economic development bureaus, as well as the Department of Justice, will submit a report with preliminary recommendations on how to prevent similar incidents three months later.
The Financial Services and the Treasury Bureau also instructed the Government Logistics Department to assume primary responsibility by closely monitoring the performance of the supplier and its associated parties on all official contracts. It said the department had ordered a removal of the bottled water concerned from offices.