Government terminates all contracts associated with owners of Xin Ding Xin

The HK Government today terminated all contracts associated with owners of Xin Ding Xin Trade Co(XDX), a government spokesperson announced on Wednesday.

Based on the information obtained by the Government Logistics Department (GLD) on the business operation of XDX earlier, as well as recent enforcement actions against XDX by government departments, the Government reasonably believes that XDX and companies associated with its owners (i.e. those sharing the same registered office with XDX and have directors including the director/shareholders of XDX) would no longer be capable of performing the contracts. Following GLD's termination of the contract with XDX for supply of bottled drinking water to government offices and three other contracts for supply of chemicals associated with its owners earlier, the Financial Services and the Treasury Bureau has also promptly informed bureaux and departments to terminate all of their contracts with the said companies.

Terminated contracts include a contract for the supply of chemicals awarded by the Drainage Services Department (DSD) and a contract for data entry services awarded by the Fire Services Department (FSD), with a total contract value of some HK$6 million and some HK$5 million respectively.

As regards the GLD's contract with XDX for the supply of bottled drinking water to government offices, XDX has submitted a deposit of about HK$1 million to the Government pursuant with contract terms. The Government is entitled to deduct from the contract deposit according to contract terms to recover its losses arising from contract termination, and reserves all rights to take actions against XDX. The GLD will also continue to be in full co-operation with the investigations of law enforcement agencies.

The GLD, DSD and FSD will continue to follow up seriously on the above contracts, including considering to recover the Government's losses from the relevant companies in accordance with contract terms. Any illegal activities identified in the contracts will be referred to law enforcement agencies for follow-up.

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