Govt launches disciplinary probe into bottled water procurement failures

The government announced a disciplinary investigation on Monday into human errors uncovered in an Audit Commission report on the procurement of bottled drinking water, targeting over a dozen staff members to determine accountability and ensure integrity in public service processes.

The government released an Audit Commission report today highlighting human errors in the procurement process for bottled drinking water, prompting the launch of a disciplinary investigation led by Permanent Secretary for Labour and Welfare Alice Lau Yim. 

The investigation targets over 10 staff members from the Government Logistics Department and the Treasury, aiming to clarify their roles, assess compliance with departmental regulations, identify any misconduct, and determine whether their performance met required standards. 

Lau stated that the investigation began immediately, with plans to interview involved personnel and collect their statements, targeting completion by the end of 2025. 

Any findings of disciplinary or performance issues will be referred to the Civil Service Bureau for further action.

Addressing concerns about the scope of the probe, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu clarified that the investigation encompasses frontline, middle, and senior-level staff, including those who have retired or begun pre-retirement leave, such as former Director of the Government Logistics Department Carlson Chan Ka-shun. 

Chan has publicly apologized over the incident in the past and acknowledged deficiencies in the bidding system that allowed the problematic contract to proceed.

Lau emphasized that the investigation will not overlook potential legal violations, noting that civil servants are obligated to report and address any unlawful conduct. 

She reassured the public that suspected illegal activities will not be dismissed lightly, even within a disciplinary framework, ensuring thorough accountability. 

This came after a scandal that erupted after GLD abruptly terminated a contract valued at HK$52.9 million with Shenzhen-based Xin Ding Xin. The company had been responsible for supplying bottled water to government offices since June.

Authorities initiated an investigation after the purported manufacturer denied any business affiliations with Xin Ding Xin, resulting in the company's suspected involvement in defrauding the government regarding the source of its bottled drinking water.