Hong Kong suspends bottled water deal with mainland firm, files police report

Hong Kong authorities have suspended a newly granted drinking water supply contract with a mainland Chinese company and reported the matter to police.

The Government Logistics Department said on Saturday that it doubted Xin Ding Xin Trade Company could fulfil its obligations under the 36-month contract, which was granted to it just two months ago. The agreement stipulates the supply of bottled drinking water to government offices on Hong Kong Island and some outlying islands, starting from the end of June.

It was one of the first contracts of its kind granted to a mainland firm, beating long-time supplier, AS Watsons Group, a subsidiary of Li Ka-shing’s CK Hutchison Holdings.

“Due to operating information recently obtained about Xin Ding Xin Trade Company, the Government Logistics Department does not believe that the company will be able to continue performing the contract and has decided to suspend it according to the terms of the contract,” it said.

“The department will continue to follow up on the case seriously, so it could take further action, including whether to terminate the related contract. The Government Logistics Department has already referred the matter to the police for investigation.”

The department noted that AS Watson would temporarily take over and supply water to the affected government offices from next week.