The Financial Services and Treasury Bureau has concluded its review of the government’s procurement system and related disciplinary investigation. Results and disciplinary actions are expected to be announced next month. The probe follows a bottled water supply scandal that emerged in August.
The Financial Services and Treasury Bureau set up a task force in August to probe a bottled water scandal involving the government’s procurement system. The scandal concerns a three-year HK$52.9 million (US$6.8 million) bottled water supply contract awarded to Xin Ding Xin Trade. The company allegedly submitted fraudulent documents and is suspected of defrauding the Government Logistics Department and breaching the Trade Descriptions Ordinance.
The task force, led by the bureau’s chief Christopher Hui Ching-yu, was formed a day after the Government Logistics Department announced it had “partially terminated” the contract on August 16. In a statement on Tuesday, the bureau said both the review of the procurement system and the related disciplinary investigation had been concluded. The government is currently reviewing the investigation report and consulting the Department of Justice to determine disciplinary actions.
The results will be announced “as soon as possible”, with completion expected next month, followed by a summary alongside the task force’s report. The incident has drawn scrutiny from the Audit Commission and the Commerce and Economic Development Bureau.
