Hong Kong’s procurement system has failed to detect document fraud and authorities are taking immediate steps to strengthen it, the head of the logistics department has said as he apologises to the public for the first time amid a growing water scandal.
Treasury chief Hui Ching-yu, meanwhile, said on Thursday that his task force reviewing the system would provide a mid-term investigation report with suggested measures instead of waiting for the investigation to be completed in three months.
After the first task-force meeting, director of the Government Logistics Department Carlson Chan Ka-shun said: “We understand that this incident, this scam, has caused huge public concerns over the government procurement process. It has also sparked doubts over the safety of drinking water acquired by the government.
“We acknowledged that there were procedural inadequacies on our part. On behalf of the Government Logistics Department, I apologise to everyone.”
His apology came a day after the government announced that it had terminated all contracts with Xin Ding Xin Trade, a company at the centre of a controversy exposing loopholes in procurement procedures.
The company, which had won a three-year HK$52.9 million (US$6.8 million) contract to supply bottled drinking water to some government offices, is suspected of scamming the Government Logistics Department and breaching the Trade Descriptions Ordinance.
