Hong Kong logistics head stripped of award as three staff face action in water scandal

Hong Kong's civil service chief Ingrid Yeung said a probe into last year's HK$166 million bottled water procurement scandal found three officers from the Government Logistics Department will be held accountable, while former director Carlson Chan Ka-shun had his Silver Bauhinia Star nomination rescinded despite no direct oversight.

Hong Kong authorities announced on Tuesday that three officers from the Government Logistics Department will be held accountable for their roles in a bottled water procurement scandal. Civil service chief Ingrid Yeung Ho Poi-yan said the probe into the HK$166 million (US$21.3 million) contract last year found two staff members will face disciplinary hearings. She stated that the staff failed to perform their duties and lacked the awareness, judgment, and analytical ability to identify issues and report them to superiors in time, adding that such shortcomings were widespread in the department.

Former department director Carlson Chan Ka-shun is believed to be the highest-ranking civil servant among the quartet, though Yeung declined to name them citing privacy concerns. He had been selected for a Silver Bauhinia Star from the government, but his name was removed from the list of awardees at the November presentation ceremony, despite being cleared of direct oversight.

The scandal stems from Audit Commission findings involving mainland suppliers like Xin Ding Xin Trade's Dongguan plant and locations in Guangzhou and Guanyinshan. It has prompted a review of the government procurement regime by a taskforce led by Chief Executive John Lee Ka-chiu, with involvement from the Financial Services and the Treasury Bureau and Department of Justice. While details remain limited, the case highlights accountability in the civil service.

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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.

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