Hong Kong’s leader has expressed deep disappointment over the Government Logistics Department’s failure to detect fraudulent documents before awarding a HK$52.9 million (US$6.78 million) contract to a bottled water supplier, urging authorities to plug loopholes in the procurement process as soon as possible.
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Commenting on the water supply scandal for the first time, Chief Executive John Lee Ka-chiu also said the treasury minister’s response to the incident had been timely and appropriate.
Lee vowed to resort to the civil service disciplinary rules if any negligence related to the case was uncovered.
The city leader was responding to a growing government water procurement saga in which a three-year HK$52.9 million contract was awarded to Xin Ding Xin Trade, a company that is now suspected of using fraudulent documents to win the bid.
On Thursday, the Government Logistics Department Director Carlson Chan Ka-shun apologised “on behalf of the department” for the saga, saying that a system flaw had led to the controversy.
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“I am very concerned about the lack of gatekeeping by the Government Logistics Department this time,” Lee said on Saturday.