Hong Kong Revokes Honor for Official Over Multimillion-Dollar Fraud
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Hong Kong officials announce the results of an investigation into a bottled water procurement scandal on Tuesday. Photo: Hong Kong government
Hong Kong has withdrawn a prestigious award for a former logistics chief and disciplined three civil servants following a probe into bottled water procurement that uncovered a multimillion-dollar fraud.
The government announced on Tuesday that it would withdraw the Silver Bauhinia Star previously awarded to Chan Ka-shun, who retired as director of government logistics last year, while three staff members involved in the contract review face varying degrees of disciplinary action for negligence.
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- Hong Kong revoked the Silver Bauhinia Star from ex-logistics chief Chan Ka-shun and disciplined three staff over a HK$52.94 million bottled water procurement fraud.
- The contract was awarded using forged documents; officials failed proper vetting, allowing the fraud and the delivery of mislabeled water.
- In response, procurement rules were tightened in 2024, including mandatory audits and AI background checks for large contracts.
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Who’s Who
- Xin Ding Xin Trade Co. Ltd.
- Xin Ding Xin Trade Co. Ltd. was awarded a HK$52.94 million ($6.8 million) contract in June 2025 to supply bottled water to Hong Kong government offices. The company secured the bid using forged documents and made blatant errors, such as misspelling the brand name "Robust." Its director and shareholder had been arrested for fraud in 2023. The company supplied water from a different manufacturer than what was specified in the contract.
- Robust
- Robust, a bottled water brand from mainland China, was central to a multimillion-dollar fraud in Hong Kong. A supplier, Xin Ding Xin Trade Co. Ltd., won a HK$52.94 million contract to supply Robust water to government offices. However, the brand owner in Guangzhou confirmed no commercial relationship with Xin Ding Xin Trade, and the supplier was found to be delivering water from a different manufacturer. The scandal exposed significant oversights in the government's procurement process.
- Hong Kong Standards and Testing Centre
- The Hong Kong Standards and Testing Centre (STC) confirmed it had never issued a test report that a supplier, Xin Ding Xin Trade Co. Ltd, claimed was from them. This report was submitted to the Government Logistics Department (GLD) while requesting a change of manufacturers for bottled water supply.
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What Happened When
- 2023：
- A couple who are a director and shareholder of Xin Ding Xin Trade were arrested for fraud involving similar document forgery.
- June 2025：
- A bottled water supply contract was awarded to Xin Ding Xin Trade Co. Ltd.
- August 2025：
- The owner of the Robust brand in Guangzhou notified the Hong Kong government that it had no commercial relationship with Xin Ding Xin Trade.
- August 2025：
- It was discovered that Xin Ding Xin Trade was delivering water produced by a manufacturer in Dongguan, not Robust.
- August 2025：
- The Hong Kong Standards and Testing Centre (STC) confirmed it never issued a test report submitted by Xin Ding Xin Trade.
- mid-August 2025：
- Police arrested the couple involved in Xin Ding Xin Trade on charges of fraud.
- By mid-August 2025：
- Approximately 30,000 bottles of substitute water had been delivered to government offices.
- By 2025：
- Audit Commission review exposed oversight in the Government Logistics Department's vetting process.
- By 2025：
- Chan Ka-shun retired as director of government logistics.
- Later in 2025：
- The Silver Bauhinia Star presentation to Chan Ka-shun was put on hold due to the investigation.
- January 1, 2026：
- Hong Kong began requiring financial audits for goods contracts exceeding HK$15 million and introduced artificial intelligence for bidder background checks.
- As of 2026：
- Three Government Logistics Department staff members were suspended from their annual pay increments.
- January 20, 2026：
- The Hong Kong government announced the withdrawal of the Silver Bauhinia Star from Chan Ka-shun and disciplinary actions against three staff members.
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