2 days 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.
