Secretary for Financial Services and the Treasury, Christopher Hui, said the administration has taken "quick and proactive" actions in dealing with suspected fraud involving the supply of bottled water for certain government premises.

His comments came a day after the Government Logistics Department (GLD) terminated its contract with Xin Ding Xin Trade Co., Limited – which was responsible for providing bottled water to government offices on Hong Kong Island and parts of the outlying islands – citing information about the company's business operation and police enforcement action.

Speaking to reporters on Tuesday, Hui said a meeting of a cross-bureau task force that he chairs will meet this week to review the government's tendering process.

"We see that there are problems and inadequacies through this incident. So we will start with the system itself, and see how we can improve the system after reviewing it comprehensively and seriously. Our goal is to target the source of the problem, find out the loopholes of the system, and then deal with it proactively," he said.

"Regarding our task force, I will host a meeting within this week and share information about it afterwards."

Hui added that the GLD is currently taking follow-up actions and the Audit Commission will conduct an independent review.

He said the government will continue to cooperate with law enforcement on the matter.

The minister also said price is not the only factor when it comes to government tendering.

"When we consider the tender, we look at it comprehensively including technology and other requirements that do not involve money," he said.

"Price is one of the considerations but is definitely not the first and only one."

Police have arrested a couple – a director of a trading company and his shareholder wife – and are looking for a mainland man in connection with the case.

The company director, who's accused of defrauding the government by providing false documents to the GLD to win the contract worth more than HK$52 million, was remanded in custody after appearing at Eastern Magistrate's Court on Tuesday.

The case was adjourned to November 11.

As for the supply of bottled water to government premises in the New Territories, Hui said authorities have confirmed the relationship between the supplier and manufacturer, and that the quality of water provided meets standards.
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Last updated: 2025-08-19 HKT 13:41