Hong Kong authorities will launch a disciplinary investigation into officials involved in a bottled water procurement scandal after an initial probe by the audit watchdog found that human error may have been a factor in the case.
A review by the Audit Commission found that the Government Logistics Department (GLD) had repeatedly failed to follow up on suspicious signs, giving the green light to a company that allegedly used fraudulent documents to win the tender and supply substandard products.
Revealing the investigation on Monday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu also announced six recommendations to improve the government’s procurement process.
The move came two months after the Government Logistics Department terminated a three-year HK$52.9 million (US$6.8 million) contract to Xin Ding Xin Trade, which allegedly used fraudulent documents.
The company, which was chosen to supply bottled drinking water to certain government offices, is suspected of scamming the department and breaching the Trade Descriptions Ordinance.
Hui said the disciplinary investigation would cover all officials who had taken part in the bottled water procurement process, regardless of their rank or whether they had retired.
