The government said on Sunday it will launch an investigation and a review, a day after officials announced the partial termination of a contract for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands.

The Government Logistics Department on Saturday announced it was halting its agreement with Xin Ding Xin Trade Co. (XDX), citing concerns about the supplier's reliability upon receiving information about its business operation.

During an urgent meeting with the relevant officials on Sunday, Secretary for Financial Services and the Treasury, Christopher Hui, said a three-pronged approach will be taken to investigate the incident. A review will also be conducted to avoid similar incidents from happening again.

"The incident has brought up concerns among government colleagues and drawn extensive attention from the public. I have therefore invited the Audit Commission to conduct a review on the tender exercise in question," Hui said.

"I will establish a task force, with me as the Chair, to work with other government bureaux and departments to comprehensively review the existing Government procurement regime. I have also instructed the Government Logistics Department (GLD) to step up its remedial action for the incident."

A government statement said the GLD has informed all government units to recall the bottled water in question, and make the necessary follow-up arrangements.