REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 54 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2010

P.A.C. Report No. 54

---

CONTENTS
				Paragraph	Page
Part 1	Introduction
	The Establishment of the Committee			1	1
	Membership of the Committee			2	1
Part 2	Procedure
	The Committee's Procedure			1	2
	Confidentiality undertaking by members of the Committee			2 - 3	3
	The Committee's Report			4	3
	The Government's Response			5	3
Part 3	Committee Proceedings
	Consideration of the Director of Audit's Report			1	4
	Meetings			2	4
	Arrangement of the Report			3 - 4	4
	Acknowledgements			5	4
Part 4	Chapter
	1.	Construction of pedestrian crossing facilities		1 - 5	5 - 6
	2.	Development of EcoPark
		A.	Introduction	1 - 2	7
		B.	Planning of EcoPark	3 - 16	7 - 13
		C.	Administration of management contract	17 - 25	14 - 16
		D.	Phase 1 development	26 - 41	16 - 21
		E.	Phase 2 development	42 - 49	22 - 25
		F.	Conclusions and recommendations	50	25 - 31
	3.	Hong Kong Chinese Orchestra Limited
		A.	Introduction	1 - 6	32
		B.	Criteria for evaluating subvented performing arts groups	7 - 29	32 - 42
		C.	Governance and management	30 - 41	42 - 45
		D.	Core activities	42 - 77	46 - 57
		E.	Human resources management	78 - 92	57 - 61
		F.	Other administrative issues	93 - 98	62 - 63
		G.	Conclusions and recommendations	99	63 - 70
	4.	Provision of postal services		1 - 7	71 - 73
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					74
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 54 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					75
Appendix relating to Part 1: "Introduction"
APPENDIX 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				76 - 77
Appendix relating to Part 2: "Procedure"
APPENDIX 2	Paper 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'				78 - 80
Appendices relating to Part 3: "Committee Proceedings"
APPENDIX 3	Witnesses who appeared before the Committee				81
APPENDIX 4	Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the first public hearing of the Committee in respect of the Director of Audit's Report No. 54 on Tuesday, 11 May 2010				82 - 83
Appendix relating to Chapter 1 of Part 4: "Construction of pedestrian crossing facilities"
APPENDIX 5	Letter of 8 June 2010 from the Commissioner for Transport				84 - 85
Appendices relating to Chapter 2 of Part 4: "Development of EcoPark"
APPENDIX 6	Information note provided by the Environment Bureau and the Environmental Protection Department in May 2010				86 - 91
APPENDIX 7	Letter of 22 June 2010 from the Director of Environmental Protection				92 - 93
APPENDIX 8	Letter of 27 May 2010 from the Secretary for Financial Services and the Treasury				94 - 96
APPENDIX 9	Letter of 25 May 2010 from the Director of Environmental Protection				97 - 102
APPENDIX 10	Letter of 4 June 2010 from the Director of Environmental Protection				103 - 105
Appendices relating to Chapter 3 of Part 4: "Hong Kong Chinese Orchestra Limited"
APPENDIX 11	Opening statement made by the Secretary for Home Affairs at the public hearing on 11 May 2010				106 - 107
APPENDIX 12	Opening statement made by the Council Chairman of the Hong Kong Chinese Orchestra Limited ("HKCO") at the public hearing on 11 May 2010				108 - 109
APPENDIX 13	Letter of 4 May 2010 from the Secretary for Home Affairs				110 - 141
APPENDIX 14	Letter of 19 May 2010 from the Secretary for Home Affairs				142 - 147
APPENDIX 15	Letter of 8 June 2010 from the Secretary for Home Affairs				148 - 152
APPENDIX 16	Letter of 14 June 2010 from the Director of Audit				153 - 155
APPENDIX 17	Letter of 18 May 2010 from the Director of Audit				156 - 157
APPENDIX 18	Letter of 11 June 2010 from the Secretary for Home Affairs				158 - 159
APPENDIX 19	Letter of 4 May 2010 from the Executive Director, HKCO				160 - 168
APPENDIX 20	Letter of 10 June 2010 from the Executive Director, HKCO				169 - 178
APPENDIX 21	Letter of 8 June 2010 from the Executive Director, HKCO				179 - 182
APPENDIX 22	Letter of 10 May 2010 from the Director of Audit				183 - 184
Appendix relating to Chapter 4 of Part 4: "Provision of postal services"
APPENDIX 23	Letter of 11 June 2010 from the Postmaster General				185 - 192
ACRONYMS AND ABBREVIATIONS					193