The Government Logistics Department (GLD) revealed on Thursday that it had paid HK$760,000 to companies linked to Xin Ding Xin (XDX) Trading Co. for chemical supply contracts before terminating all agreements with the scandal-tainted supplier.
In response to Sing Tao Daily's inquiries, GLD confirmed that two chemical contracts associated with XDX's principals had received partial payments totaling HK$760,000. The contracts, awarded to Sino Ocean Enterprises, covered supplies of bleaching powder, bleach solution, and bleach tablets to government departments.
According to the department, approximately HK$360,000 was paid to Sino Ocean Enterprises Limited for a HK$710,000 bleaching powder contract that began in August last year. Another HK$400,000 was disbursed to the same company for a HK$1.08 million bleach solution contract starting the same month. A third contract for bleach tablets valued at HK$236,000 and commencing this August received no payments.
GLD explained that all contracts followed standard government procurement terms featuring "payment upon delivery" arrangements where payments are processed within 30 days after confirming goods meet specifications. With the contracts now terminated, no further payments will be made to the suppliers.
The department noted that unlike XDX's HK$1 million security deposit for the bottled water contract, no deposits were required for the chemical contracts as their values fell below the HK$1.36 million threshold mandating advance payments under the Stores and Procurement Regulations.
GLD has instructed all bureaus and departments to remove remaining "XinLe" bottled water from circulation while coordinating follow-up arrangements.
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