Former Logistics Director's Award Suspended Amid Fraud Probe

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The Hong Kong government has temporarily suspended an award for a former logistics director who was at the center of a fraudulent water procurement contract. This decision comes as the investigation into the scandal continues.

Carlson Chan, the former director of logistics, will not be included in the attendance list of the Honours and Awards Presentation Ceremony scheduled for November 15, according to a statement released by the government on Tuesday evening. As of Wednesday afternoon, Chan is still listed as a recipient of the 2025 Silver Bauhinia Star.

The government mentioned that Chan is among several officers at different levels—frontline, middle, and senior—who are involved in the ongoing investigation. The decision to remove him from the attendance list was made after consulting a special selection committee led by the chief secretary. The government has already informed Chan about this development.

Chan was replaced by Vicki Kwok, who previously served as the private secretary to Chief Executive John Lee, last month. This happened after Chan was placed on pre-retirement leave in September.

Under Chan’s leadership, the Government Logistics Department (GLD) awarded six contracts in March to a mainland Chinese company, Xin Ding Xin (XDX), to supply bottled water to government offices following an open tender. However, the GLD halted the HK$52.9 million deal in August when it was discovered that XDX had been sourcing water from Dongguan instead of Guangzhou, as claimed.

XDX's director, Lui Tsz-chung, and his wife were arrested over suspected fraud and providing false information. Five days after the scandal broke, Chan apologized for his department’s oversight, acknowledging there were "indeed inadequacies" in the procurement procedures.

Public outcry followed, with the government facing scrutiny over potential loopholes in its tendering and due diligence processes. Meanwhile, Lui appeared in court on Tuesday. Magistrate Kestrel Lam adjourned the case to January next year to allow for further investigations. The prosecution stated that customs authorities are examining whether additional charges will be filed.

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