Couple arrested for fraud in HK$52.9 million water procurement scandal

Hong Kong police have arrested a married couple suspected of defrauding the government in connection with a HK$52.9 million (US$6.8 million) contract to supply drinking water to civil service offices.

Kung Hing-fun, the senior superintendent of the Commercial Crime Bureau of Police, said on Monday that the man, 61, and woman, 57, were arrested the previous day.

Kung added that the married couple were the owners of a company that had secured a 36-month water deal, and that a mainland Chinese man was still at large. The Post has learned the company in question is called Xin Ding Xin Co. Ltd.

She also said that the deal stipulated supplying bottled water to certain government offices, but the product was sourced from a third-party supplier in Dongguan rather than a Guangzhou-based company as specified in the contract. The company mentioned in the contract was named Robust, the Post learned.

Wong Chun-yue, the bureau’s chief superintendent, said the Guangzhou firm learned from the news that it was selected as the contract supplier, adding Xin Ding Xin only asked once about water quality and had no further communication.

“We believe the suspects used the Guangzhou company’s water quality documents to meet tender requirements,” Wong said.