Letters | How Tai Po fire exposed weakness in Hong Kong contract governance
Readers call for steps to improve procurement and contract oversight, official accountability for lapses that led to the tragedy, and appreciation for donor generosity
The water scandal exposed flaws in supplier vetting and contract monitoring, while the Tai Po fire highlighted fragmented oversight in building maintenance tenders and inadequate risk governance. These cases underscore a critical truth: procurement is not a clerical exercise but a strategic function that safeguards public trust, financial integrity, and even life safety. Hong Kong must move beyond transactional tendering and adopt advanced practices such as category management, supplier risk analytics and performance-based contracting.
Procurement is inseparable from contract formation. Decisions made during sourcing shape contractual obligations, risk allocation and dispute resolution frameworks. By embedding strong governance and clear performance terms at the procurement stage, Hong Kong can reduce disputes and align with its vision of becoming a global arbitration and mediation hub. This synergy positions Hong Kong uniquely to offer end-to-end solutions – from strategic sourcing to conflict resolution – enhancing its international competitiveness.
To achieve this transformation, Hong Kong should invest in developing a new generation of procurement leaders. Institutions such as the Institute for Purchasing & Supply of Hong Kong can play a pivotal role by setting professional standards and offering certifications. A dedicated procurement leadership academy, an initiative the institute could spearhead with academic partners, should be established to nurture talent capable of advising both public and private sectors, ensuring professionals are equipped with commercial acumen, ethical rigour and risk intelligence.
Enforcement is equally vital. Hong Kong should introduce hefty, meaningful fines for violations of procurement and maintenance standards. Contractors must demonstrate financial viability or purchase sufficient insurance to absorb these penalties without jeopardising projects. This approach will strengthen accountability and deter malpractice.