logo
Mainland water plant holds operating licence: police

Mainland water plant holds operating licence: police

RTHK19 hours ago
Mainland water plant holds operating licence: police
Senior superintendent Kung Hing-fun says the water samples will be sent to the Government Laboratory for testing. Photo: RTHK
Police on Wednesday said they will send samples involved in a government water supply scandal for testing in the Government Laboratory, after confirming that the mainland plant involved in the saga holds a commercial licence to operate on the mainland.
Xin Ding Xin Trade Co Ltd, a company which recently won a HK$52 million contract to provide bottled water to government offices, is accused of lying about how it sourced the water from the mainland.
The government has since terminated its contract with the firm.
During a press conference on Wednesday, police said they have conducted investigations in Shenzhen and Dongguan, and visited the implicated water plant in Zhangmutou.
'After two days of investigation by our Commercial Crime Bureau officers, we have reason to believe that bottled water delivered to government offices in Hong Kong Island and [some] outlying islands came from the water supplier mentioned above,' said Kung Hing-fun, senior superintendent of the Commercial Crime Bureau.
'We will send the observations and findings from this trip, as well as bottled water samples we seized, to the Government Laboratory for further analysis.'
Mainland authorities confirmed that the plant has a licence for commercial operation and met the requirements needed to produce drinking water, Kung added.
On Sunday, a 61-year-old company director and his 57-year-old shareholder wife were arrested by the police in connection with the case.
The former later appeared in court, accused of providing officials with false documents to win the water contract, while the latter was released on bail.
The couple was arrested again on Wednesday, this time by the Customs and Excise Department, on suspicion of violating the Trade Descriptions Ordinance.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Hong Kong logistics chief apologises for bottled water scandal oversights
Hong Kong logistics chief apologises for bottled water scandal oversights

HKFP

timean hour ago

  • HKFP

Hong Kong logistics chief apologises for bottled water scandal oversights

Hong Kong's logistics director has apologised for his department's oversights, breaking his silence on a bottled water supply scandal that has engulfed the administration this month. Speaking to the press on Thursday morning, after meeting a new task force set up to address the procurement scandal, Director of Government Logistics Carlson Chan vowed to review the government systems. 'I understand that this incident, this hoax, has raised huge public concerns over government procurement and caused concern for our colleagues in the government about the water supply. In this respect, we feel that there were indeed inadequacies in our procedures and I would like to apologise to everyone on behalf of the Government Logistics Department (GLD),' Chan said in Cantonese. The GLD, headed by Chan, supplied drinking water from a firm that secured a HK$52.9 million contract through allegedly fraudulent means. The director and his department are under fire over what the city's treasury chief has called 'inadequacies' in the procurement process. Chan's statement came a day after government departments suspended six contracts with the company, Xin Ding Xin Trading Co. (XDX) and other firms linked to it, including chemical supply and data entry contracts. A Hong Kong couple that owns the company have been arrested over suspected fraud and providing false information. Earlier on Thursday morning and the night prior, reporters from local media waited at the lobby of Chan's residence for a comment. Leaving the building in the morning, Chan said only: 'Good morning.' 'Red flags' Treasury chief Christopher Hui, at the same press conference, said that the task force would review the government's procurement regime and issue interim investigation results with suggested measures ahead of a full report expected in three months. The task force's interim report will look into potential 'red flags' such as the due diligence required in the procurement process as well as issues of contract management and quality control, Hui said. On Thursday, Chan admitted that fraudulent elements slipped under the department's radar, saying that XDX may have utilised 'improper' means to acquire legitimate documents, or that they may have used forged documents to meet tender requirements and secure the government contract. As a result, GLD officers were not able to detect any forgeries in time when they examined the documents, Chan said: 'During this review, we will pay special attention to how we can help our colleagues be more vigilant so that these scams will not happen again.' As for the HK$2,268 the government had already paid XDX, the sum would be deducted from a HK$1 million deposit paid to the GLD, Chan said. Asked about the government's criteria for choosing water supply contracts, Chan on Thursday told reporters that the department adhered to the 'lowest bidder wins' principle, as it did for its last contract with a different company. The GLD also considers the supplier's licenses, the tender terms, independent water quality reports, and ISO certifications, among others factors, he added.

Hong Kong terminates 6 contracts with firms linked to bottled water scandal
Hong Kong terminates 6 contracts with firms linked to bottled water scandal

HKFP

time2 hours ago

  • HKFP

Hong Kong terminates 6 contracts with firms linked to bottled water scandal

Hong Kong authorities have terminated at least six contracts with a company involved in an allegedly fraudulent water supply contract with the government, as well as firms linked to it. The latest development in the procurement scandal saw various government departments terminate all of their contracts with companies tied to Xin Ding Xin Trading Co. (XDX), which allegedly misled the government into entering a fraudulent contract to supply drinking water for government offices in the city. The police and customs authorities have arrested the Hong Kong couple that owned the company, Lui Tsz-chung and his wife Chan Pik-lam, over suspected fraud and providing false information. Investigations are ongoing and more arrests may be made, officers have said. The termination of contracts came after the city's treasury chief admitted to 'inadequacies' by the government, as concerns grew over the government's procurement processes. Chemicals, data entry A government spokesperson said in a Wednesday statement that the Government Logistics Department had terminated the drinking water contract as well as three other contracts for supplying chemicals with XDX. The government on Saturday announced that the HK$52.9 million water contract had been 'partially suspended.' Following an order from the Financial Services and the Treasury Bureau, other departments terminated their contracts, including a chemical supply contract with the Drainage Services Department (DSD) and a data entry contract with the Fire Services Department (FSD), worth some HK$6 million and HK$5 million respectively. Companies linked to XDX are those sharing its registered office address or having overlapping directors and shareholders, the government said. The city government has said it is entitled to deduct a HK$1 million deposit from XDX under the now-terminated water supply contract, 'to recover its losses arising from contract termination, and reserves all rights to take actions against XDX.' 'The GLD, DSD and FSD will continue to follow up seriously on the above contracts, including considering [recovering] the Government's losses from the relevant companies in accordance with contract terms,' the spokesperson continued.

Drinking water saga spurs race to procure improvements
Drinking water saga spurs race to procure improvements

RTHK

time2 hours ago

  • RTHK

Drinking water saga spurs race to procure improvements

Drinking water saga spurs race to procure improvements Christopher Hui, centre, leads officials at a press conference after attending a task force meeting on reviewing the government's procurement process. Photo: RTHK Secretary for Financial Services and the Treasury Christopher Hui says the government will seek to pinpoint areas for improvement in its procurement system as soon as possible before making an announcement to the public. Xin Ding Xin – a company that was recently awarded a HK$52 million contract to provide bottled drinking water to certain government offices – is accused of lying about how it sourced the water from the mainland. The government has since terminated all contracts with the firm and its associated companies for bottled water, chemicals and data entry services – and invited the Audit Commission to conduct a detailed investigation into the tender process for the contract involving water supply. The administration has also established a cross-bureau task force to review its procurement process, aiming to deliver a report within three months. Hui spoke to the media after chairing the task force's first meeting on Thursday. 'We will look at areas like due diligence required, issues on contract management and also quality control," he said. "These are the relevant aspects that will be covered in our interim results. Because what we would expect is that before we make the final announcement, we hopefully would like to get the result earlier than the three months that we said earlier.' The government will release the report to the public, but only after ensuring it won't interfere with ongoing police and customs investigations, Hui added. The director of the Government Logistics Department (GLD), Carlson Chan, meanwhile, admitted that the department shoulders the main responsibility for the incident and apologised for sparking public concern. 'I fully understand that this incident has sparked significant public concern about government procurement and led to doubts among government colleagues about the safety of drinking water provided by suppliers,' he said. 'In this regard, we acknowledge shortcomings in our procedures, and on behalf of the GLD, I apologise to the public." The company suspected of defrauding the government to win the water contact had allegedly obtained genuine documents through improper means while submitting them together with forged documents during the tender process, making it difficult for GLD staff to detect the fraudulent components during the review process, Chan said. The incident shows that the current procurement mechanism may not be robust enough to prevent fraud, he said, promising to put forward improvement measures once the review process is completed. Chief Secretary Eric Chan said the administration will follow a dedicated disciplinary mechanism to penalise civil servants for misconduct should they be found to be in the wrong. He made the remarks after attending an event in Beijing in response to questions about whether officials should be held accountable. Chan added the government is highly concerned about the incident, especially as it involved suspected fraud. A company director and his shareholder wife have been arrested on suspicion of fraud and violating the Trade Descriptions Ordinance in connection with the saga. The husband has been charged with fraud for allegedly providing false documents to win the water contract – while the latter is out on bail pending investigations.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store