Customs arrests couple in bottled water scandal for false trade descriptions

Hong Kong Customs has arrested a 61-year-old male director and a 57-year-old female shareholder of a trading company suspected of violating the Trade Descriptions Ordinance in a scandal involving the supply of counterfeit bottled water to the government.

The arrests target Xin Ding Xin Trade Co. (XDX), which earlier secured a HK$52.94 million government contract. The company is accused of submitting a bid and providing water without authorization from the mainland manufacturer.

Head of the Customs’ Trade Descriptions Investigation Bureau, Tommy Kwok Ka-kui, stated that the investigation found the supplier provided drinking water to the Government Logistics Department with false manufacturer information, constituting a suspected breach of the ordinance.

The male director is currently remanded in custody on a separate fraud charge, while the female shareholder has been released on bail. Kwok confirmed that the investigation is ongoing and further arrests have not been ruled out.

The arrested individuals have been identified as the company's director and shareholder, 61-year-old Lui Tze-chung, and his wife, 57-year-old Chan Pik-lam, who is also a shareholder.

Lui was charged with one count of fraud and appeared in Eastern Magistrates' Courts yesterday, where his bail application was denied. The case was adjourned until November 11. His wife was released on bail and is required to report to police in mid-September.

Kwok also revealed that authorities have traveled to the involved water factory in Dongguan for investigation.

When questioned about the specific false claims regarding the manufacturer, Kwok declined to comment further, citing the ongoing nature of the investigation.

(Marco Lam)