REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 56 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2011

P.A.C. Report No. 56

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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 - 3
	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.	Hong Kong 2009 East Asian Games
		A.	Introduction	1 - 2	5
		B.	Operating cost and revenue	3 - 67	5 - 32
		C.	Other matters	68 - 77	32 - 35
		D.	Conclusions and recommendations	78	35 - 46
	2.	Hong Kong Export Credit Insurance Corporation		1 - 11	47 - 51
	3.	Hong Kong Housing Authority: Management of commercial properties
		A.	Introduction	1 - 2	52
		B.	Management of retail premises	3 - 39	52 - 65
		C.	Management of car parks and factory estates	40 - 47	65 - 67
		D.	The way forward	48 - 65	67 - 75
		E.	Conclusions and recommendations	66	75 - 85
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					86
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 56 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					87
Appendix relating to Part 1: "Introduction"
Appendix 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				88 - 89
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'				90 - 92
Appendices relating to Part 3: "Committee Proceedings"
Appendix 3	Witnesses who appeared before the Committee				93 - 94
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. 56 on Thursday, 5 May 2011				95 - 96
Appendices relating to Chapter 1 of Part 4: "Hong Kong 2009 East Asian Games"
Appendix 5	Opening statement made by the Secretary for Home Affairs at the public hearing on 5 May 2011				97 - 101
Appendix 6	Letter of 13 May 2011 from the Secretary for Financial Services and the Treasury				102 - 103
Appendix 7	Letter of 24 May 2011 from the Secretary for Home Affairs				104 - 130
Appendix 8	Tripartite Agreement for the 2009 East Asian Games				131 - 143
Appendix 9	Memorandum and Articles of Association of the 2009 East Asian Games (Hong Kong) Limited				144 - 163
Appendix 10	Letter of 6 May 2011 from the Secretary for Home Affairs				164 - 167
Appendix 11	Letter of 31 May 2011 from the Secretary for Home Affairs				168 - 175
Appendix 12	Letter of 30 May 2011 from the Director of Audit				176 - 177
Appendix 13	Letter of 1 June 2011 from the Director of Audit				178 - 179
Appendix 14	2009 East Asian Games (Hong Kong) Limited: Directors' Report and Financial Statements for the year ended 31st March 2010				180 - 207
Appendices relating to Chapter 2 of Part 4: "Hong Kong Export Credit Insurance Corporation"
Appendix 15	Letter of 12 May 2011 from the Secretary for Commerce and Economic Development				208 - 215
Appendix 16	Letter of 23 May 2011 from the Secretary for Commerce and Economic Development				216 - 219
Appendix 17	Letter of 26 May 2011 from the Secretary for Commerce and Economic Development				220
Appendices relating to Chapter 3 of Part 4: "Hong Kong Housing Authority: Management of commercial properties"
Appendix 18	Opening statement made by the Director of Housing at the public hearing on 12 May 2011				221 - 223
Appendix 19	Supplementary information provided by the Housing Department in May 2011				224 - 231
Appendix 20	Letter of 16 May 2011 from the Director of Housing				232 - 251
Appendix 21	Letter of 30 May 2011 from the Director of Housing				252 - 253
Appendix 22	Letter of 31 May 2011 from the Director of Housing				254 - 264
Appendix 23	Letter of 24 May 2011 from the Director of Housing				265 - 276
Appendix 24	Letter of 30 May 2011 from the Director of Housing				277 - 284
ACRONYMS AND ABBREVIATIONS					285 - 286