Overview

• Hong Kong police arrested a 61-year-old man and a 57-year-old woman, whom they identified as owners of Xin Ding Xin Trade Co Ltd, on suspicion of defrauding the government over a HK$52.9 million water supply contract.
• Investigators allege the couple misrepresented the product’s origin by naming Guangzhou-based Robust (Guangdong) in the tender while actually sourcing water from a third-party supplier in Dongguan using falsified quality certificates.
• Authorities are examining potential breaches of the Trade Descriptions Ordinance and probing the government’s supplier verification process for cross-border tenders.
• The Government Logistics Department has terminated the water contract and three related chemical supply agreements linked to the arrested couple’s business after uncovering evidence of document falsification.
• Secretary for Financial Services Christopher Hui has established a dedicated task force and invited the Audit Commission to review the procurement exercise and recommend reforms.