Carlson Chan has ceased to be director of government logistics, according to a Hong Kong government notice, weeks after his department was embroiled in a water supply contract scandal.
Chan, who ceased to be director of government logistics on Friday, has been placed on pre-retirement leave, a government gazette entry said.
Deputy Director of Government Logistics Avia Lai has been named acting director.
The announcement comes after Chief Executive John Lee unveiled a new civil servant accountability mechanism in his fourth Policy Address on Wednesday, which could lead to department heads being investigated and held accountable for deficiencies.
In mid-August, the Government Logistics Department (GLD) axed a HK$52.9 million bottled water contract with Xin Ding Xin Trading Co. after the company allegedly used fraudulent means to win the tender to supply water for government offices. Two people who own the firm were arrested.
Chan only broke his silence on the scandal five days after the termination of the XDX contract. He attributed the blunder to inadequacies in the GLD’s procurement procedures and made a public apology.
He admitted that his department may have overlooked elements of fraud in the deal with XDX and that the company may have utilised “improper” means to acquire legitimate documents, or used forged documents to meet tender requirements and secure the government contract.
Lee said last month that he was “deeply disappointed” in the GLD and that the department had failed to do its job.
The Hong Kong leader vowed to identify shortcomings and loopholes in the government’s procurement regime as soon as possible, after the contract scandal sparked concerns over the authorities’ vetting process.
Lee told the Legislative Council (LegCo) on Wednesday that consequences for civil servants under the new mechanism would include “warnings, reprimands, not being granted a salary increment, relegation in rank, reduction in salary, compulsory retirement and even dismissal.”
