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Crime in Hong Kong
Hong KongHealth & Environment

Hong Kong water scandal: tougher vetting of contract bidders needed, lawmakers say

Legislators have accused the government of accepting information submitted by contract bidders at face value

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Xin Ding Xin is accused of using a third-party factory for producing bottled water. Photo: Karma Lo
Vivian AuandEdith Lin

Hong Kong lawmakers have called for tougher vetting of bidders for government tenders, accusing authorities of accepting information submitted by companies at face value after awarding a HK$52.9 million (US$8.8 million) bottled water contract to a firm suspected of deception.

They made the calls for stricter background checks as a senior official apologised for the first time over the growing procurement scandal, which came to light at the weekend after the government was forced to terminate a three-year deal with a water supplier, Xin Ding Xin Trade.
The company is suspected to have commissioned a third-party factory instead of the contracted manufacturer to produce bottled water supplied to some government offices on Hong Kong Island and parts of the outlying islands.
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Authorities said on Friday that the Government Logistic Department had also terminated another three contracts in connection with Xin Ding Xin and its directors. The contracts in question were awarded to Sino Ocean Enterprises (HK) Ltd, led by Lui Tsz-chung, a director of Xin Ding Xin Trade.

The government said the contracts for the provision of bleach, bleaching powder and tablets were worth nearly HK$2 million.

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In the tender document for the water deal, provided by the Financial Services and the Treasury Bureau on Thursday, the government said it would consider a bid based on various factors, including whether it complied with sample evaluation, delivery and certification requirements.

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