Hong Kong logistics official admits system failed to detect water fraud

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, apologising to the public for the first time since a growing water scandal broke out.

Treasury chief Hui Ching-yu, meanwhile, said on Thursday that his task force, which is reviewing the system, would provide a midterm 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 acknowledge 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.