‘Regularity audit’ grants wider powers for water tender probe, says govt watchdog

The Director of Audit, Nelson Lam Chi-yuen, has stated that his department's investigation into the government's controversial drinking water procurement tender will proceed under its broader "regularity audit" powers rather than a "value-for-money" audit. Lam also confirmed that the probe has so far encountered no resistance.

In a television news interview aired on Wednesday, Lam explained the decision, noting the high level of public and governmental concern over the issue.

He said a regularity audit is used to examine "whether the government and public officials have used every cent of taxpayers' money properly" and "whether the accounts are correct."

Given that the case involves a tender process, Lam pointed to the Audit Ordinance, which clearly outlines the Audit Commission's powers and reporting responsibilities for such audits. 

He clarified that compared to a "value-for-money" audit—which requires a tripartite agreement between the government, the Legislative Council, and the Audit Commission to grant authority—the "regularity audit" framework provides more extensive powers, leading to its selection for this investigation.

When asked if he had faced any obstruction, Lam emphasized that the Audit Ordinance grants the Director broad authority and mandates that all public officials have a duty to provide any requested information.

He also cited Secretary for Financial Services and the Treasury Christopher Hui Ching-yu’s pledge of full cooperation, adding that no resistance has been encountered in the investigation so far.

Lam noted that should the investigation uncover any illegal activities, corruption, or fraud, the matter would be reported directly to the Chief Executive.

Reiterating his commitment to an independent and professional investigation, Lam said the Audit Commission will balance transparency with confidentiality.

The investigation is expected to take one month and will be conducted in accordance with international auditing standards. He confirmed that he will ultimately report his findings to the Chief Executive.

(Marco Lam)