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Hong Kong politics
Hong KongPolitics

No separate inquiry needed to probe Hong Kong water scandal, treasury chief says

Christopher Hui defends adequacy of Audit Commission to conduct investigation, and recommends use of technology to improve vetting of tenders

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Xin Ding Xin’s director Lui Tsz-chung and shareholder Chan Pik-lam have been arrested in the wake of the scandal. Lui has been charged with fraud, while Chan is currently out on bail. Photo: Karma Lo
Leopold Chen
Hong Kong’s treasury chief has dismissed calls to set up a separate commission of inquiry to investigate officials’ roles in a bottled water procurement scandal, arguing that the government auditor will be able to identify lapses in a “professional and independent” manner.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, the head of a new task force that is reviewing the case, on Sunday defended the adequacy of having the Audit Commission conduct the investigation and also recommended that authorities explore the use of technology to improve scrutiny of public tenders.

Hui, who heads the bureau that oversees the Government Logistics Department, earlier said the task force would submit a report in three months.

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But he has faced mounting pressure over the past week to clarify officials’ roles after authorities failed to vet water supplier Xin Ding Xin Trade for allegedly defrauding the government in a HK$52.9 million (US$8.8 million) three-year contract.

On Sunday, Hui was asked whether the government would establish a separate commission of inquiry to clarify accountability issues.

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Two senior officials appointed to the task force – logistics department director Carlson Chan Ka-shun and Permanent Secretary for Financial Services and the Treasury Andrew Lai Chi-wah – are also members of the Central Tender Board that gave the final approval to the contract.

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