The Hong Kong Government Office was embroiled in a scandal over the procurement of counterfeit drinking water last year. Chief Executive John Lee ordered a thorough investigation. The government has since completed its disciplinary inquiry, and on the 20th announced the results, stating that it will withdraw the honors awarded to Chan Ka-sun, former Director of the Hong Kong Government Logistics Department, who was responsible for the procurement.
According to comprehensive Hong Kong media reports, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, and Secretary for the Civil Service Ingrid Yeung, held a press conference on Tuesday to announce the investigation results.
At the press conference, Ingrid Yeung stated that the investigation found three Logistics Department personnel whose performance did not meet required standards, citing lack of vigilance and judgment, as well as failure to report problems in a timely manner, resulting in the government's missed opportunity to detect forged documents. Of the three involved, two will face internal disciplinary hearings, including one directorate-level staff member. For those who have not reached the salary ceiling, their salary increments will be suspended. As for the remaining individual, although he reported to his superior at the time, the investigation report found his vigilance, analysis, and judgment to be inadequate. The Civil Service Bureau will issue a written warning to him, to be reflected in his performance appraisal.
Ingrid Yeung said that former Director of Logistics Chan Ka-sun was not negligent in this incident, but had inadequacies in improving the performance of subordinates. The government will withdraw the decision to award him the Silver Bauhinia Star. She described honors as a form of reward, stating that withdrawal of honors is not a punishment.
Last year, the Hong Kong Government Office switched to procuring a mainland China brand of drinking water, which in August was exposed in a counterfeiting scandal. The directors of the winning contractor, Xindingxin Trading Co., Ltd—Lui Tsz-chung and shareholder Chan Bik-lam—were arrested for alleged fraud. Chan Ka-sun, who was responsible for procurement, publicly apologized afterwards, and Hong Kong public opinion called for accountability from the relevant departments.
In September last year, the Hong Kong government gazetted that Chan Ka-sun would step down as Director of Government Logistics and commence pre-retirement leave, with his vacancy filled by Deputy Director Lai Wong Suk-yin.
In November last year, in response to media inquiries, the Hong Kong government said that because Chan Ka-sun and others were under disciplinary investigation regarding the procurement of drinking water by the Government Logistics Department, Chan Ka-sun would not be included in the guest list for the honors presentation ceremony held on November 15, and he had been notified.