REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 58 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2012

P.A.C. Report No. 58

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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 Council for Accreditation of Academic and Vocational Qualifications		1 - 10	5 - 8
	2.	Unlawful occupation of government land
		A.	Introduction	1	9
		B.	Prevention and detection action	2 - 26	9 - 17
		C.	Enforcement action	27 - 40	18 - 23
		D.	Audit's case studies	41 - 60	23 – 30
		E.	Land Control Information System	61 - 66	30 - 31
		F.	Conclusions and recommendations	67	32 - 43
	3.	Youth Square
		A.	Introduction	1 - 5	44 - 45
		B.	Operation and performance	6 - 27	45 - 52
		C.	Planning and implementation	28 - 37	52 - 56
		D.	Conclusions and recommendations	38	56 - 64
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					65
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 58 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					66
Appendix relating to Part 1: "Introduction"
Appendix 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				67 - 68
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'				69 - 71
Appendices relating to Part 3: "Committee Proceedings"
Appendix 3	Witnesses who appeared before the Committee				72
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. 58 on Monday, 30 April 2012				73 - 74
Appendices relating to Chapter 1 of Part 4: "Hong Kong Council for Accreditation of Academic and Vocational Qualifications"
Appendix 5	Letter of 5 June 2012 from the Executive Director, Hong Kong Council for Accreditation of Academic and Vocational Qualifications				75 - 81
Appendix 6	Letter of 17 May 2012 from the Executive Director, Hong Kong Council for Accreditation of Academic and Vocational Qualifications				82 - 84
Appendices relating to Chapter 2 of Part 4: "Unlawful occupation of government land"
Appendix 7	Letter of 25 May 2012 from the Director of Lands				85 - 101
Appendix 8	Letter of 17 May 2012 from the Director of Agriculture, Fisheries and Conservation				102 - 104
Appendices relating to Chapter 3 of Part 4: "Youth Square"
Appendix 9	Opening statement made by the Secretary for Home Affairs at the public hearing on 30 April 2012				105 - 108
Appendix 10	Letter of 30 April 2012 from the Secretary for Home Affairs				109 - 114
Appendix 11	Letter of 8 May 2012 from the Secretary for Home Affairs				115 - 127
Appendix 12	Letter of 27 April 2012 from the Secretary for Home Affairs				128 - 133
Appendix 13	Letter of 16 May 2012 from the Secretary for Home Affairs				134 - 139
Appendix 14	Letter of 4 June 2012 from the Secretary for Home Affairs				140 - 141
Appendix 15	Letter of 18 May 2012 from the Secretary for Home Affairs				142 - 147
Appendix 16	Letter of 25 May 2012 from the Secretary for Home Affairs				148 - 149
ACRONYMS AND ABBREVIATIONS					150