Government Logistics Department says usual supplier AS Watson will temporarily supply water to affected government offices starting next week
Hong Kong authorities have suspended a newly granted drinking water supply contract with a mainland Chinese company, reporting the matter to police.
The Government Logistics Department said on Saturday that it doubted Xin Ding Xin Trade Company could fulfil its obligations under the 36-month contract, which was granted to it just two months ago. The agreement stipulates the supply of bottled drinking water to government offices on Hong Kong Island and some outlying islands, starting from the end of June.
It was one of the first contracts of its kind granted to a mainland firm, beating long-time supplier, AS Watsons Group, a subsidiary of Li Ka-shing’s CK Hutchison Holdings.
“Due to operating information recently obtained about Xin Ding Xin Trade Company, the Government Logistics Department does not believe that the company will be able to continue performing the contract and has decided to suspend it according to the terms of the contract,” it said.
