Hong Kong treasury chief admits ‘inadequacies' in HK$52.9m water contract blunder

HKFP

8 hours ago

The treasury chief has admitted to 'inadequacies' by the government after it awarded a HK$52.9 million contract for supplying bottled water to an allegedly fraudulent company.
The contract, whereby bottled water from China would be delivered to civil service offices, has since been suspended.
The government will study ways to improve its procurement regime after a dedicated taskforce completes a 'serious and comprehensive review' into the contract blunder, Secretary for Financial Services and the Treasury Christopher Hui said on Tuesday.
Hui's remarks came two days after police arrested a married couple on suspicion of winning the contract through fraudulent means. Authorities found that the company, Xin Ding Xin Trading Co, had no relationship with the Guangzhou supplier it claimed to be sourcing the water from, and had instead obtained the product from another supplier in Dongguan.
'The whole incident is problematic'
Hui told the press on Tuesday that the government had terminated the contract on Monday. When asked if any payments had been made, the minister did not give a direct answer, but said the Government Logistics Department was following up with 'specific remedial measures.'
The Government Logistics Department was 'tasked with taking up the main responsibility' of monitoring contract performance, the government said in a statement on Sunday. Asked on Tuesday if any officials would be held accountable or made to resign, Hui did not respond directly.
'We see that the whole incident is problematic; there are inadequacies,' Hui said.
'Our goal is to address both the symptoms and the root causes, ensuring consistency between form and substance, while identifying loopholes in the system and responding proactively,' he added.
Bail denied
On Tuesday, 61-year-old businessman Lui Tsz-chung of Xin Ding Xin Trading Co. was brought to the Eastern Magistrates' Courts. According to the charge sheet, Lui stands accused of falsely telling Government Logistics Department staff that the information and supporting documents he submitted in his bid to supply bottled drinking water to government offices were true.
He also allegedly claimed his company would supply bottled drinking water produced by Robust (Guangdong) Drinking Water, with the intent of securing the tender. He thereby 'induced' the government to award the HK$52.9 million contract, securing profits for his company, the charge sheet read.
Lui was denied bail pending his next court appearance in November. He has reserved the right to challenge his bail status within eight days.
Police told HKFP on Tuesday at Lui's wife had not been formally charged following her arrest.
Hong Kong authorities are also pursuing a mainland Chinese man for suspected involvement in the case.
Kelly HoManaging Editor
Ho Long Sze Kelly is a Hong Kong-based journalist covering politics, criminal justice, human rights, social welfare and education. As a Senior Reporter at Hong Kong Free Press, she has covered the aftermath of the 2019 extradition bill protests and the Covid-19 pandemic extensively, as well as documented the transformation of her home city under the Beijing-imposed national security law.
Kelly has a bachelor's degree in Journalism from the University of Hong Kong, with a second major in Politics and Public Administration. Prior to joining HKFP in 2020, she was on the frontlines covering the 2019 citywide unrest for South China Morning Post's Young Post. She also covered sports and youth-related issues.
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