Hong Kong centre takes legal action against firm suspected of water procurement fraud
The Hong Kong Standards and Testing Centre clarified on Wednesday that it had not provided any services to Xin Ding Xin Trade, the water supplier suspected of defrauding the government in the HK$52.9 million (US$6.8 million) contract.
'The centre is following up on this incident with the relevant government departments and has taken legal action to pursue legal liabilities,' it said.
Jeffrey Lam Kin-fung, a centre director and member of the Executive Council, the city's top decision-making body, previously denied any involvement with tests conducted on 'XinLe' bottled water provided by Xin Ding Xin.
The water procurement controversy came to light on Saturday last week when the Government Logistics Department announced it had 'partially terminated' a contract with the company to supply bottled water to civil servant offices on Hong Kong Island and some outlying islands for three years.
Xin Ding Xin Trade's director Lui Tsz-chung, and his wife and shareholder Chan Pik-lam were arrested. Lui was charged with one count of fraud on Monday, while Chan was bailed.
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