REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

THE REPORTS OF THE DIRECTOR OF AUDIT

ON

THE ACCOUNTS OF THE GOVERNMENT OF

THE HONG KONG SPECIAL ADMINISTRATIVE REGION

FOR THE YEAR ENDED

31 MARCH 2005

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 45)






February 2006

P.A.C. Report No. 45






CONTENTS
ParagraphPage

Part 1Introduction

The Establishment of the Committee11

Membership of the Committee21

Part 2Procedure

The Committee's Procedure12

The Committee's Report2 - 33

The Government's Response43

Part 3Report of the Public Accounts Committee on Report No. 42 of the Director of Audit on the Results of Value for Money Audits and Supplemental Report of the Public Accounts Committee on Report No. 41 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 42]


Laying of the Report14

The Government Minute2 - 114 - 16

Part 4Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2004 and the Results of Value for Money Audits (Report No. 43)
[P.A.C. Report No. 43]


Laying of the Report117

The Government Minute2 - 5417 - 42

Part 5Committee Proceedings

Consideration of the Director of Audit's Report143

Meetings243

Arrangement of the Report3 - 443

Acknowledgements543

Part 6Observations of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2005

144

Part 7Chapter

1.Development of a site at Sai Wan Ho

A.Introduction1 - 445

B.Summonsing Mr LEUNG Chin-man, former Director of Buildings, to attend before the Committee to give evidence5 - 1045 - 46

C.Pre-tender enquiries on gross floor area calculation11 - 1646 - 48

D.Development intensity of the Site17 - 2348 - 50

E.Granting of exemption areas24 - 10251 - 84

F.Provision of Government Accommodation and granting of bonus areas103 - 12485 - 91

G.Site Classification125 - 13391 - 94

2.Operation and training of the Civil Aid Service1 - 4101

3.Recovery of legal costs by the Legal Aid Department1 - 25102 - 112

4.The Government's efforts in developing sustainable systems to keep Hong Kong clean

1 - 4113

SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE

114

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 45 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

115

APPENDIX 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region

116 - 117

APPENDIX 2Paper presented to the Provisional Legislative Council by the Chairman of the Public Accounts Committee at the meeting on 11 February 1998 on Scope of Government Audit in the Hong Kong Special Administrative Region - 'Value for Money Audits'

118 - 120

Appendix relating to Part 3: "Report of the Public Accounts Committee on Report No. 42 of the Director of Audit on the Results of Value for Money Audits and Supplemental Report of the Public Accounts Committee on Report No. 41 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 42] "

APPENDIX 3Letter of 20 January 2006 from the Secretary for the Civil Service

121 - 122

Appendices relating to Part 4: "Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2004 and the Results of Value for Money Audits (Report No. 43)
[P.A.C. Report No. 43]"

APPENDIX 4Letter of 20 January 2006 from the Secretary-General of the University Grants Committee

123 - 125

APPENDIX 5Letter of 20 January 2006 from the Commissioner of Customs and Excise

126 - 127

APPENDIX 6Letter of 20 January 2006 from the Secretary for Housing, Planning and Lands

128 - 129

APPENDIX 7Letter of 20 January 2006 from the Government Property Administrator

130 - 135

APPENDIX 8Letter of 24 January 2006 from the Director of Buildings

136 - 139

APPENDIX 9Letter of 23 January 2006 from the Director of Lands

140 - 141

APPENDIX 10Letter of 20 January 2006 from the Chief Executive of the English Schools Foundation

142 - 157

Appendices relating to Part 5: "Committee Proceedings"

APPENDIX 11Witnesses who appeared before the Committee

158 - 159

APPENDIX 12Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the first public hearing of the Committee on Monday, 28 November 2005

160 - 161

Appendices relating to Chapter 1 of Part 7: "Development of a site at Sai Wan Ho"

APPENDIX 13Written submission of 8 December 2005 by Mr LEUNG Chin-man, former Director of Buildings

162 - 177



APPENDIX 14Written submission of 31 December 2005 by Mr LEUNG Chin-man, former Director of Buildings

178

APPENDIX 15Letter of 12 December 2005 from the Secretary for Housing, Planning and Lands

179 - 187

APPENDIX 16Letter of 7 December 2005 from the Secretary for Housing, Planning and Lands

188 - 198

APPENDIX 17Minutes of the Building Authority Conference held on 1 August 2001

199 - 209

APPENDIX 18Minutes of the Building Authority Conference held on 22 October 2001

210 - 213

APPENDIX 19Letter of 8 December 2005 from the Director of Buildings

-Practice Note 23 on "Discretionary Approval - Factors for Consideration"
214 - 216

APPENDIX 20Letter of 28 November 2000 from a developer to the Director of Lands

217

APPENDIX 21Letter of 30 November 2000 from the Director of Lands to a developer

218

APPENDIX 22Letter of 12 December 2005 from the Director of Audit

219 - 220

APPENDIX 23Letter of 31 December 2005 from the Director of Lands

221 - 225

APPENDIX 24File minute of 30 July 2001 from the Assistant Director/New Buildings 1 to the Director of Buildings

226

APPENDIX 25Letter of 28 December 2005 from Mr Alex LUI Chun-wan

227

APPENDIX 26Letter of 16 December 2005 from the Director of Buildings

228 - 230

APPENDIX 27Letter of 31 December 2005 from the Director of Buildings

231 - 235

APPENDIX 28Letter of 15 December 2005 from the Director of Lands

236 - 240

APPENDIX 29Minutes of the Building Authority Conference held on 23 April 2002

241 - 244

Appendix relating to Chapter 2 of Part 7: "Operation and training of the Civil Aid Service"

APPENDIX 30Letter of 12 December 2005 from the Chief Staff Officer of the Civil Aid Service

245 - 247

Appendices relating to Chapter 3 of Part 7: "Recovery of legal costs by the Legal Aid Department"

APPENDIX 31Letter of 1 December 2005 from the Director of Legal Aid

248 - 259

APPENDIX 32Letter of 1 December 2005 from the Director of Accounting Services

260

Appendix relating to Chapter 4 of Part 7: "The Government's efforts in developing sustainable systems to keep Hong Kong clean"

APPENDIX 33Letter of 12 December 2005 from the Director of Food and Environmental Hygiene

261 - 262