Public Accounts Committee

REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 64 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS

July 2015

P.A.C. Report No. 64

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.	Buildings Department's actions on unauthorized building works
		A.	Introduction	1 - 11	5 - 9
		B.	Implementation of Government policies on unauthorized building works	12 - 43	9 - 26
		C.	Handling of public reports	44 - 56	26 - 32
		D.	Actions through large-scale operations	57 - 64	32 - 36
		E.	Follow-up actions on removal orders	65 - 80	36 - 41
		F.	System for supporting enforcement actions	81 - 82	41 - 42
		G.	Way forward	83 - 91	42 - 45
		H.	Conclusions and recommendations	92 - 94	46 - 65
	2.	Operation of the Government Flying Service
		A.	Introduction	1 - 10	66 - 72
		B.	Provision of flying services	11 - 20	72 - 75
		C.	Management of aircrew members	21 - 31	75 - 81
		D.	Maintenance of aircraft	32 - 41	81 - 86
		E.	Procurement of aircraft and spare parts	42 - 52	86 - 91
		F.	Way forward	53	91 - 92
		G.	Conclusions and recommendations	54 - 56	92 - 110
	3.	Public cooked food markets managed by the Food and Environmental Hygiene Department
		A.	Introduction	1 - 8	111 - 115
		B.	Vacancy rates of markets	9 - 16	115 - 118
		C.	Provision of facilities in markets	17 - 27	118 - 124
		D.	Management of market stalls	28 - 34	124 - 128
		E.	Management of stall rentals and charges	35 - 36	128 - 131
		F.	Way forward	37 - 43	131 - 133
		G.	Conclusions and recommendations	44 - 46	133 - 144
	4.	Management of water supply and demand		1 - 5	145 - 147
	5.	Hong Kong Sports Institute Limited		1 - 6	148 - 150
	6.	Employees' compensation for injuries and fatalities		1 - 6	151 - 152
	7.	Education Bureau Kowloon Tong Education Services Centre		1 - 6	153 - 155
	8.	Rehabilitation services provided by the Correctional Services Department		1 - 6	156 - 157
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					158
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 64 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					159
Appendix relating to Part 1: "Introduction"
Appendix 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				160 - 161
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'				162 - 164
Appendices relating to Part 3: "Committee Proceedings"
Appendix 3	Witnesses who appeared before the Committee				165 - 166
Appendix 4	Introductory Remarks by Chairman of the Public Accounts Committee, Hon Abraham SHEK Lai-him, GBS, JP at the first public hearing of the Committee in respect of the Director of Audit's Report No. 64 on 5 May 2015				167 - 168
Appendices relating to Chapter 1 of Part 4: "Buildings Department's actions on unauthorized building works"
Appendix 5	Opening statement made by Secretary for Development at the public hearing on 5 May 2015				169 - 171
Appendix 6	PowerPoint materials used by Director of Buildings at the public hearing on 5 May 2015				172 - 181
Appendix 7	Letter dated 15 June 2015 from Director of Buildings				182 - 196
Appendix 8	Letter dated 20 May 2015 from Director of Buildings				197 - 207
Appendix 9	Major duties of the three Divisions and one Section in the Buildings Department responsible for handling unauthorized building works and implementing the building safety and maintenance enforcement programmes				208 - 209
Appendix 10	Manpower and key performance indicators of the three Divisions and one Section in the Buildings Department responsible for handling unauthorized building works and implementing the building safety and maintenance enforcement programmes				210
Appendix 11	Clause 3(A) of the Schedule of Fees under the Buildings Department's standard consultancy agreement				211 - 212
Appendix 12	Clauses 5.3.21 and 8.2 of the Brief under the Buildings Department's standard consultancy agreement				213 - 214
Appendix 13	Targets for clearing outstanding removal orders by 31 March 2015				215
Appendix 14	Guidelines for Instituting Prioritized Prosecution Against Non-complied Statutory Orders and Prosecution Policy for Prompt and Rigorous Action				216 - 224
Appendix 15	Action workflow of the Buildings Department to recover the costs from the pertinent owners upon completion of default works				225 - 226
Appendix 16	Summary of improvement measures taken/to be taken by the Buildings Department in response to the Audit Report and enquiries of the Public Accounts Committee at the public hearings				227 - 230
Appendix 17	Letter dated 15 June 2015 from Secretary for Development				231 - 233
Appendices relating to Chapter 2 of Part 4: "Operation of the Government Flying Service"
Appendix 18	Organization chart showing the approved establishment and working strength of the Government Flying Service				234
Appendix 19	Submission dated 4 May 2015 from Government Flying Service Aircraft Technicians Union				235 - 236
Appendix 20	Submission dated 6 May 2015 from Government Flying Service Aircraft Engineers Association				237 - 238
Appendix 21	Submission dated 6 May 2015 from Government Flying Service Aircrewman Officers Association				239 - 241
Appendix 22	Submission dated 7 May 2015 from Government Flying Service Pilots Union				242 - 243
Appendix 23	Letter dated 1 June 2015 from Controller of Government Flying Service				244 - 290
Appendix 24	Opening statement made by Secretary for Security at the public hearing on 9 May 2015				291 - 293
Appendix 25	Letter dated 1 June 2015 from Controller of Government Flying Service				294 - 319
Appendix 26	Audit/inspection reports from the Civil Aviation Department and overseas organizations on the Government Flying Service operation				320 - 364
Appendix 27	Standing Accounting Instructions issued by the Treasury				365
Appendix 28	Letter dated 20 May 2015 from Secretary for Financial Services and the Treasury				366 - 367
Appendices relating to Chapter 3 of Part 4: "Public cooked food markets managed by the Food and Environmental Hygiene Department"
Appendix 29	Organization chart of a typical District Environmental Hygiene Office in the Food and Environmental Hygiene Department				368
Appendix 30	Establishment of the Food and Environmental Hygiene Department staff responsible for management of cooked food markets, cooked food centres and cooked food hawker bazaars as at 30 April 2015				369 - 370
Appendix 31	Opening statement made by Secretary for Food and Health at the public hearing on 11 May 2015				371 - 372
Appendix 32	Opening statement made by Director of Food and Environmental Hygiene at the public hearing on 11 May 2015				373 - 376
Appendix 33	Letter dated 2 June 2015 from Secretary for Food and Health				377 - 389
Appendix 34	Executive summary of the survey on the viability of three public markets and six cooked food hawker bazaars				390 - 407
Appendix 35	Letter dated 12 June 2015 from Secretary for Food and Health				408 - 414
Appendix 36	Correspondence between the Food and Environmental Hygiene Department, the Architectural Services Department and other relevant parties on upgrading the electricity supply for Kwun Tong Ferry Concourse Cooked Food Market				415 - 489
Appendix 37	Guidelines on electrical safety and use of electrical appliances in cooked food markets/cooked food centres				490
Appendix 38	Guidelines for termination of tenancy agreement on account of commission of offences				491
Appendix 39	Guidelines on termination of tenancy agreement due to breach of tenancy clauses and conditions				492 - 493
Appendix 40	Sample letter to tenants on the provisions including the condition pertaining to the proper use of the communal seating area				494 - 495
Appendix 41	Notice on occupation of tables and chairs in the communal seating area				496
Appendix 42	Specimen of the tenancy agreement between the Food and Environmental Hygiene Department and tenant				497 - 508
Appendix 43	Reply dated 25 June 2015 from Secretary for Food and Health				509
Appendix relating to Chapter 4 of Part 4: "Management of water supply and demand"
Appendix 44	Letter dated 15 May 2015 from Director of Water Supplies				510 - 512
Appendices relating to Chapter 5 of Part 4: "Hong Kong Sports Institute Limited"
Appendix 45	Letter dated 5 June 2015 from Chief Executive of Hong Kong Sports Institute				513 - 522
Appendix 46	Letter dated 8 June 2015 from Secretary for Home Affairs				523 - 526
Appendix relating to Chapter 6 of Part 4: "Employees' compensation for injuries and fatalities"
Appendix 47	Letter dated 1 June 2015 from Commissioner for Labour				527 - 544
Appendix relating to Chapter 7 of Part 4: "Education Bureau Kowloon Tong Education Services Centre"
Appendix 48	Letter dated 2 June 2015 from Secretary for Education				545 - 554
Appendix relating to Chapter 8 of Part 4: "Rehabilitation services provided by the Correctional Services Department"
Appendix 49	Letter dated 29 May 2015 from Commissioner of Correctional Services				555 - 560
ACRONYMS AND ABBREVIATIONS					561 - 563