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

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’s auditors 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 newly formed task force that is reviewing the case, on Sunday defended the adequacy of having the Audit Commission conduct its 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’ time. 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 by local media whether the government would establish a separate commission of inquiry to clarify accountability issues, as two senior officials appointed to the newly formed task force – Government Logistics Department director Carlson Chan Ka-shun and permanent secretary of the Financial Services and the Treasury Bureau Andrew Lai Chi-wah – were also members of the central tender board that gave the final approval to the contract.

But Hui dismissed the idea.

“The reason why we invited the Audit Commission to participate in the investigation is that we hope it can detect any flaws in the execution throughout the [process of vetting] as an independent third party,” he told reporters after appearing on a radio programme.

“We believe the Audit Commission will conduct its work professionally.”

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