Latest news with #LuiTsz-chung
HKFP
18 hours ago
- Business
- 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.
HKFP
a day ago
- Business
- HKFP
Hong Kong couple arrested again over allegedly providing false information in gov't water contract scandal
Hong Kong's customs department has arrested a couple on suspicion of providing false information in relation to a water supply contract with the government, the latest development in a scandal over the authorities' procurement processes. On Wednesday, the Customs and Excise Department said businessman Lui Tsz-chung and his wife Chan Pik-lam had been arrested for allegedly breaching the Trade Descriptions Ordinance. They were already apprehended by police on Sunday for suspected fraud. Tommy Kwok, head of the Trade Descriptions Investigation Bureau, told reporters that the couple allegedly attached false manufacturer information to the water – bottled in mainland China – supplied to the Government Logistics Department. The investigation is ongoing and more arrests may be made, he said. The second arrest is the latest development in a scandal relating to a now-suspended government contract, worth HK$52.9 million, with bottled water supplier Xin Ding Xin Trading Co. Lui is the company's director and his wife is a shareholder. The supplier had been selected to provide mainland Chinese bottled water to Hong Kong government offices. But authorities later found that the company had no relationship with the Guangzhou supplier it claimed to be sourcing water from. Instead, the product was obtained from a different supplier in Dongguan. The couple is suspected of winning the contract through fraudulent means. Lui was formally charged with fraud on Tuesday and denied bail, while his wife was released on police bail pending further investigation. The scandal has raised concerns about the government's procurement and vendor vetting processes. Secretary for Financial Services and the Treasury Christopher Hui called an urgent meeting on Sunday to review the incident and has promised a probe into the blunder. On Tuesday, he admitted the scandal reflected 'inadequacies' in the processes but did not answer directly when asked if any officials would resign or be held accountable.
