Latest news with #GovernmentLogisticsDepartment
South China Morning Post
6 hours ago
- Business
- South China Morning Post
Hong Kong government faces scrutiny over bottled water procurement scandal
Lawmakers have called for a comprehensive review of the authorities' procurement process following allegations that a company supplied infringing mainland Chinese-branded bottled water to government offices, prompting a police investigation. The Post also found that the directors of the company involved, Xin Ding Xin Trade, were linked to unpaid loans of HK$8 million (US$1.1 million) via another firm, just one day after its HK$52.9 million contract with the Government Logistics Department was partially terminated. This contract involved delivering 1.88 million bottles of drinking water to government offices. The scandal emerged after police said they were investigating suspected illegal activities by the company, following government statements that it was no longer confident in the company's ability to fulfil the contract based on recent operational information received. In June, Xin Ding Xin secured a 36-month contract to supply 'XinLe' bottled water to government offices on Hong Kong Island and the outlying islands. The company claimed the water would be manufactured by Robust (Guangdong) Drinking Water's Guangzhou branch. However, Robust's legal director in Guangdong accused Xin Ding Xin of listing them as one of the manufacturers on the labels of its XinLe bottled water without authorisation. He told local media that the company had reported the matter to Hong Kong authorities and was considering administrative complaints, civil lawsuits or criminal proceedings. The Post on Sunday contacted Robust's customer service on WeChat, where an operator confirmed that Xin Ding Xin is not a product of the company.
RTHK
a day ago
- Business
- RTHK
Govt turns screws on water supplier to its offices
Govt turns screws on water supplier to its offices The Government Logistics Department says it is 'not satisfied that XDX would still be capable of performing the contract' of supplying government offices on Hong Kong Island and parts of the outlying islands. File photo: RTHK The Government Logistics Department on Saturday "partially terminated" a contract for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands. The contract with Xin Ding Xin (XDX) Trade, which started in June, was originally due to expire three years later. In a statement, the department said it had earlier conducted a test of bottled drinking water samples in government offices, which confirmed that the bottled drinking water from all suppliers complied with the safety standards for bottled drinking water. But it also said it was "not satisfied that XDX would still be capable of performing the contract" upon receiving information about the company's business operation and will therefore "follow up seriously and take action including whether to terminate the contract". From next week, bottled water in the area will be supplied by AS Watson Group that provides water branded as "Cool", which the company currently supplies to government offices in Kowloon. The department added that it has referred the case to police for investigation. The department conducted an open tender in March this year to select suitable suppliers of bottled drinking water for government departments. Professional Trade International won the tender to supply drinking water to the New Territories and part of Lantau.
South China Morning Post
a day ago
- Business
- South China Morning Post
Hong Kong suspends drinking water supply deal with mainland Chinese firm, calls police
Hong Kong authorities have suspended a drinking water supply contract with a mainland China-based company just two months after granting it, reporting it to police. The Government Logistics Department said on Saturday that it doubted Xin Ding Xin Trade Company could fulfil its obligations under the 36-month contract requiring the supply of bottled drinking water to government offices on Hong Kong Island and some outlying islands, starting from the end of June. It was the first contract of its kind granted to a mainland firm, beating long-time supplier, AS Watson. 'Due to operating information recently obtained about Xin Ding Xin Trade Company, the Government Logistics Department does not believe that the company will be able to continue performing the contract and has decided to suspend it according to the terms of the contract,' it said. 'The department will continue to follow up on the case seriously, so it could take further action, including whether to terminate the related contract. The Government Logistics Department has already referred the matter to the police for investigation.' The department noted that AS Watson would temporarily take over and supply water to the affected government offices from the next week.
