Honor withdrawn, pension intact: govt clarifies stance on former procurement chief

Public concern has emerged over whether former Government Logistics Department (GLD) director Carlson Chan Ka-shun’s pension would be affected after the government released disciplinary and task force investigation reports into last year’s bottled water procurement controversy on Tuesday.

At a media briefing, officials announced that the government had withdrawn its earlier decision to award Chan the Silver Bauhinia Star. Three GLD officers, including one at the directorate level, will face formal disciplinary proceedings for their roles in the incident.

Chan began his pre-retirement leave last year. While the government confirmed the withdrawal of the honor, it did not announce any change to his pension arrangements.

Will Chan still get his pension?

Chan joined the government in 1987 and is covered under the Old Pension Scheme.

Asked whether Chan would continue to receive his pension, Secretary for the Civil Service Ingrid Yeung Ho Poi-yan did not respond directly. She said accountability must be determined strictly based on evidence uncovered by the investigation team.

“Accountability is not baseless but must be based on facts,” she said, noting that the investigation found Chan was not aware of the irregularities because his subordinates failed to report them in a timely manner. As a result, no negligence was established on his part.

Yeung added that the decision to withdraw the Silver Bauhinia Star was made in light of the serious reputational damage caused to the government. She said Chan “should have done more” during his tenure to strengthen the capabilities, awareness, and initiative of his subordinates.

She stressed that the withdrawal of the honor was not a disciplinary penalty but a “withdrawal of a reward.”

As the government has stated that no punishment was imposed on Chan, it is understood that his pension will not be affected.

When asked whether Chan had responded to the government’s letter regarding the decision, Yeung said officers concerned had the right to make representations, and any new views would be considered and placed on their personnel records. She said it was not appropriate to disclose details of any responses received.

Disciplinary action against GLD officers

Yeung said the investigation found preliminary evidence that two of the three involved GLD officers, including one at the directorate level, failed to promptly identify obvious irregularities in the procurement process.

Formal disciplinary hearings will be initiated against the two officers, with penalties to be determined based on the outcomes of the proceedings. Their shortcomings will also be reflected in their appraisal reports, and salary increments will be withheld for those who have not yet reached the maximum pay point of their ranks.

As for the third officer, Yeung said that although the individual had reported the matter to superiors, the government would still record deficiencies in vigilance, judgment, and analytical ability in the appraisal report. Salary increments will be suspended, and a written warning will be issued, requiring the officer to report any future irregularities to superiors promptly.

Yeung said all three officers remain in their posts while the disciplinary process is ongoing. Their identities will not be disclosed for privacy reasons.