Core Points - A Hong Kong supplier, Xindingxin Trading Co., Ltd., has been accused of fraudulently using the brand name of a mainland company, Lebaisi, during a government tender process [1][6] - The Hong Kong government has terminated all contracts with Xindingxin, which had won a bottled water supply contract worth approximately HKD 52.94 million [1][6] - The incident has prompted the Hong Kong government to initiate a review of its procurement mechanisms and establish a dedicated task force to prevent future occurrences [6][7] Group 1: Company Involvement - Xindingxin was established in 2007 and is a private limited company in Hong Kong, with its sole director arrested for fraud [1][6] - The actual supplier of the water, Dongguan Guanyinshan Drinking Water Co., Ltd., has been found to have met production and quality standards, and there is no evidence of collusion with Xindingxin [2][3] Group 2: Government Response - The Hong Kong government has taken three major actions in response to the incident, including inviting the Audit Commission to conduct a review and forming a dedicated task force to examine procurement processes [6][7] - The Logistics Department has terminated contracts with Xindingxin and is coordinating with other departments to address the situation [6][9] - The government has implemented immediate measures to improve the procurement process, including stricter requirements for bidders and regular quality testing of supplied products [9][10]

Core Viewpoint - The Hong Kong government has terminated contracts with a water supplier, Xindingxin Trading Co., Ltd., due to fraudulent practices in the bidding process, where the company misrepresented its product as a well-known brand, resulting in a loss of approximately HKD 52.94 million [1][6]. Group 1: Company Background and Actions - Xindingxin Trading Co., Ltd. was established in 2007 and is a private limited company in Hong Kong, with its sole director arrested for fraud [1][2]. - The company won a government bottled water contract in June 2023, but was exposed in August for not having a legitimate partnership with the brand it claimed to represent [1][6]. Group 2: Investigation and Findings - Initial investigations revealed that Xindingxin engaged in fraudulent practices during the bidding process, but no collusion was found with the actual water supplier, Dongguan Guanyinshan Drinking Water Co., Ltd., which has been confirmed to meet production and quality standards [2][3]. - The Dongguan water plant has an annual production capacity of 50,000 tons and operates under proper mining licenses [5]. Group 3: Government Response and Measures - The Hong Kong government has initiated three follow-up measures, including inviting the Audit Commission to conduct a review, terminating contracts with Xindingxin, and forming a dedicated task force to review procurement mechanisms [6][7]. - The task force aims to provide immediate recommendations on due diligence, bidding criteria, contract management, and quality assurance before the completion of a comprehensive review [7]. Group 4: Procurement Process Improvement - The Logistics Department has acknowledged the inadequacies in the current procurement process and has implemented immediate optimizations, such as stricter eligibility criteria for bidders and requirements for regular water quality testing [9][10]. - The department has also arranged for temporary water supply from a previous contractor while re-tendering the contract [9].

Core Viewpoint - The Hong Kong government has terminated contracts with a water supplier, Xindingsheng Trading Co., Ltd., due to fraudulent practices in the bidding process, where the company misrepresented its product source [1][3]. Group 1: Company Background and Actions - Xindingsheng Trading Co., Ltd. was established in 2007 and is a private limited company in Hong Kong, with its sole director arrested for fraud [1]. - The company won a government bottled water contract worth approximately HKD 52.94 million in June 2023 but was exposed for not having a legitimate partnership with the brand it claimed to represent [1][2]. Group 2: Investigation and Findings - Initial investigations revealed that Xindingsheng Trading Co. engaged in credential fraud during the bidding process, but no collusion with the actual water supplier, Dongguan Guanyinshan Drinking Water Co., Ltd., was found [2]. - The Dongguan water plant, which has a production capacity of 50,000 tons per year, was confirmed to meet production and water quality standards [2]. Group 3: Government Response and Measures - The Hong Kong government has initiated three follow-up measures, including inviting the Audit Commission to conduct a review, expediting remedial actions, and forming a dedicated task force to examine the procurement mechanism [3][4]. - The Logistics Department has terminated contracts with Xindingsheng Trading Co. and is coordinating with other departments to address related contracts [4]. Group 4: Procurement Process Improvement - The Logistics Department has acknowledged the inadequacies in the current procurement mechanism and is working to optimize the bidding process to prevent future fraud [6]. - New procurement regulations have been introduced, including disqualifying bidders with significant past breaches of contract and requiring regular water quality testing reports from suppliers [6][7].