Govt withdraws Silver Bauhinia Star for former procurement chief after bottled water probe

The government on Tuesday announced the withdrawal of the Silver Bauhinia Star previously awarded to the former director of the Government Logistics Department (GLD), Carlson Chan Ka-shun, following the release of disciplinary and task force reports into last year’s bottled water procurement controversy.

The findings were outlined at a media briefing by Secretary for Financial Services and the Treasury Christopher Hui Ching-yu and Secretary for the Civil Service Ingrid Yeung Ho Poi-yan. While investigators found no negligence on Chan’s part during his tenure as GLD director, the government concluded that he should have taken stronger action to enhance staff vigilance and performance. As a result, the decision to confer the honor has been rescinded.

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Yeung said the investigation team, led by grade-A1 administrative officer Alice Lau Yim, conducted a thorough fact-finding and analysis exercise and concluded that three GLD officers performed below the standard expected of their rank and experience.

The officers were found to have lacked sufficient alertness and judgment, failed to identify obvious irregularities, and did not act promptly to follow up or escalate concerns, causing the department to miss opportunities to uncover falsified documents and take timely corrective action.

Although the probe did not identify negligence by Chan, Yeung said the shortcomings exposed were not isolated incidents but reflected broader weaknesses within the department’s procurement practices.

She noted that procurement work required stronger professional sensitivity and a more proactive and cautious approach to prevent losses to the government.

Hui said he had written to Chan to state that, as the department head at the time, he should have done more to strengthen his subordinates’ capabilities, awareness, and initiative.

Yeung said the incident had drawn significant public concern and caused serious reputational damage to the government. After consulting the Advisory Committee on Honours and Awards, the administration decided to withdraw the previously announced decision to award Chan the Silver Bauhinia Star, and the former official has been informed. 

She stressed that Chan is currently on pre-retirement leave and that the decision was unrelated to whether he remains in service, adding that the honors system is a form of commendation rather than punishment.

As for the three GLD officers found to have underperformed, two will face formal disciplinary proceedings, including one at the directorate level. Any penalties imposed will be reflected in their performance appraisals, and incremental pay will be withheld for those who have not reached the maximum pay point.

The remaining officer, who had reported the matter to superiors, will also have shortcomings noted in his appraisal, with pay increments suspended and a written warning issued.

Yeung said the identities of the officers would not be disclosed in accordance with guidelines from the Privacy Commissioner for Personal Data. She added that the report highlighted a general lack of alertness, judgment, and analytical ability across different grades within the department, rather than failures by individual staff members alone.