The
scandal involving a company using fraudulent documents to win a HK$52.9 million (US$6.78 million) bottled water supply contract has put the spotlight on the Hong Kong government’s
procurement mechanism. Equally worthy of concern is the long-standing practice of subcontracting works in the construction industry, with the city’s railway operator looking into a
suspected fraud involving the use of non-contract specified building materials for an expansion project.
In question are the bricks used for building partitions in the equipment rooms at the Tung Chung East Station. Instead of procuring the German-made brand “YTong” as required in the agreement, a subcontractor has reportedly opted for one with a similar name – “Beijing YiTong”. The YTong brand has been used in Hong Kong for more than 30 years in major developments, including the city’s airport.
The MTR Corporation rightly
demanded a full report from the main contractor following complaints. It said the contractor had confirmed that the batch of bricks in question would not be used, adding that it would instruct and supervise the contractor to complete the contract in full accordance with the specifications. The government has also expressed concern over the matter and pledged to follow up on any acts of fraud.
It was revealed that UBlok Advanced Materials, the exclusive licensed manufacturer of YTong products for the mainland, Hong Kong and Macau, had
initiated legal action two months ago after learning that counterfeit YTong products had flowed into the Hong Kong market.
The MTR Corp has also filed a report with the police.
The case is different from the high-profile water procurement scandal, where officials have come under fire for failing to prevent fraudsters from winning lucrative government contracts. But the public can be excused for wondering what went wrong with gatekeeping in the public sector.
