“We urge the department to learn from this case. It should set a reasonable schedule for implementing any new transport schemes or measures in future, and announce the implementation date and details of the new schemes or measures as soon as possible,” the ombudsman said.

The investigation was triggered by a motorist who complained that he had not received his tag, which is required for payment at government-run tunnels using the system, as scheduled after applying to the Transport Department in January last year.

When he called the HKeToll operator to inquire, he was told the department had provided it with an incorrect address. Further checks with the department confirmed the address was correct and the operator ultimately asked him to collect the tag in person at a service centre.

The department manages the scheme but HKeToll is operated by a private service provider.

Hongkongers caught out by tunnel not using HKeToll, incur fines amid confusion

The watchdog said transport authorities explained that the service provider had discovered programming errors in the interface between the computer systems of the department and HKeToll, causing the incomplete transfer of some addresses.

The problem resulted in 18,000 vehicle tags going undelivered or being sent to the wrong addresses.

The launch of HKeToll last year was marred by several issues, including delays and failed deliveries of tags, causing inconvenience and frustration among motorists.

The Transport Department had planned to first roll out the system on the Tsing Sha Highway on February 26 last year, but postponed the move to May 7, citing the need for more time to educate the public about application procedures.

Before the launch, motorists also reported not receiving their toll tags on time, leading to confusion and complaints.

The report said the department had explained that at the early stage of processing the applications, the service provider had advised applicants to reapply for vehicle tags in person at customer service centres to avoid the items getting lost again.

The system has been rolled out at all government-run tunnels. More than 810,000 tags had been issued by authorities as of December last year, accounting for more than 99 per cent of the licensed vehicles in the city.

Hong Kong’s Eastern Harbour Tunnel set for new HKeToll system on Sunday

The ombudsman said the handling had undoubtedly caused inconvenience to affected vehicle owners, and gave rise to a perception that the department was “too hasty” and “poorly organised” in introducing HKeToll.

The watchdog also labelled as unsatisfactory the department’s failure to discuss the matters with the service provider and establish appropriate follow-up and remedial measures immediately after the tag delivery problems.

The service provider should have taken the initiative to re-send the tags instead of asking the applicants to attend the centres to complete their applications, it added.

The ombudsman also pointed out that the service provider had only begun processing tag applications in December 2022, which meant it had to handle a large volume in a short amount of time, leaving it with little room to deal with unexpected issues.

The delay until May reflected the department’s original plans were “over-optimistic”, it said.

The Transport Department has apologised to the complainants, and has reviewed work processes with the service provider and asked it to improve the training of its frontline staff, according to the report.