‘Shortcomings’ in scandal-hit water procurement deal: Hong Kong treasury chief
Authorities confirm problematic winning bid was the lowest among contenders while logistics company that delivered water says it is also a victim in case
Hong Kong’s treasury chief has admitted to “shortcomings” in procurement processes after a scandal erupted over a HK$52.9 million (US$6.8 million) contract to supply bottled drinking water to some government offices, as authorities confirmed that the allegedly fraudulent winning bid was the lowest they received.
But Secretary for Financial Services and the Treasury Christopher Hui Ching-yu stressed on Tuesday that price was not the sole consideration in granting the contract to a company later linked to alleged fraud.
Hui addressed the media on Tuesday for the first time since the fiasco came to light at the weekend, while a logistics company responsible for delivering the water said it was also a victim in the case and had potentially lost as much as HK$800,000.
In a reply to the Post, the Government Logistics Department confirmed that the bid by Xin Ding Xin Trade in the suspected fraud case was the lowest among all bidders for the 36-month contract to supply bottled drinking water to government offices on Hong Kong Island and some outlying islands.
“The government paid Xin Ding Xin a total of HK$2,268 for the contract. As the contract has been terminated, the government will not make any further payments to the company,” the department said.
It said it had arranged for AS Watson Group, a long-time supplier, to provide bottled drinking water to the affected offices for four months, at a cost of HK$7.1 million.