By Jeffie Lam

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The head of Hong Kong’s logistics department, embroiled in a water procurement scandal, has started his pre-retirement leave.
According to the latest government gazette, Carlson Chan Ka-shun ceased to be the director of the Government Logistics Department on Friday as he began his pre-retirement leave.
His former deputy, Avia Lai Wong Shuk-han, was appointed as the acting director of the department.
Asked whether the leave was part of disciplinary actions taken against the official, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, who oversees the department, said the move was only a “normal arrangement”.
He added that the government was addressing the scandal from three aspects: the department’s remedial efforts, the Audit Commission’s investigation and a task force he chaired to review the incident and come up with recommendations.
Last month, the government was caught in a bottled water procurement scandal in which the logistics department awarded a three-year HK$52.9 million (US$6.8 million) contract to Xin Ding Xin Trade, which allegedly used fraudulent documents.
The company, chosen to supply bottled drinking water to some government offices, is suspected of scamming the department and breaching the Trade Descriptions Ordinance.
Chan earlier made a public apology “on behalf of the department” amid the scandal, with Hui ordering the department to “take up the main responsibility”.
“We acknowledge that there were procedural inadequacies on our part. On behalf of the Government Logistics Department, I apologise to everyone,” Chan said at the time.
He was sitting on the panel alongside representatives from other bureaus.
In his annual policy address on Wednesday, Chief Executive John Lee Ka-chiu announced the establishment of the new “Heads of Department Accountability System”, which would penalise underperforming senior civil servants and address internal deficiencies.
Under a proposed two-tier investigation system, a department head will be responsible for handling an investigation to identify deficiencies and take disciplinary action against underperforming officers in general cases.
The Public Service Commission, a statutory body advising on public service matters, will be authorised to conduct independent investigations into serious cases.
This includes cases that are widespread, repetitive and systematic, or when the head of the relevant department is believed to be implicated.
But Lee said that the water scandal would be handled by the existing mechanism rather than the new system.