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 2017

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 69)



February 2018

P.A.C. Report No. 69





CONTENTS


Paragraph

Page

Part 1Introduction

The Establishment of the Committee

1

1

Membership of the Committee

2

1

Part 2Procedure

The Committee's Procedure

1

2 - 3

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4 - 5

3

The Government's Response

6

4

Part 3Report of the Public Accounts Committee on Report No. 66 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 66]

Laying of the Report

1

5

The Government Minute

2 - 11

5 - 19

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 2016 and the Results of Value for Money Audits (Report No. 67)
[P.A.C. Report No. 67]

Laying of the Report

1

20

The Government Minute

2 - 68

20 - 61

Part 5Supplemental Report of the Public Accounts Committee on Report No. 67 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 67A]

Laying of the Report

1

62

The Government Minute

2 - 5

62 - 65

Part 6Committee Proceedings

Consideration of the Director of Audit's Report

1

66

Meetings

2

66

Arrangement of the Report

3 - 4

66

Acknowledgements

5

66

Part 7Observations 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 2017

1

67

Part 8Chapter

1.Administration of lump sum grants by the Social Welfare Department

1

68

2.Procurement and maintenance of government vessels

A.Introduction

1 - 11

69 - 72

B.Procurement of government vessels

12 - 40

72 - 88

C.Maintenance of government vessels

41 - 57

88 - 96

D.Management of maintenance materials

58 - 70

96 - 101

E.Conclusions and recommendations

71 - 73

101 - 112

3.Hospital Authority's management of public hospital projects

1 - 5

113 - 116

4.Regulation of non-franchised bus and school private light bus services

1 - 5

117 - 120

5.Operation of the Land Registry

1 - 5

121 - 123

6.Regulation of hotels and guesthouses

1 - 5

124 - 127

7.Hong Kong Design Institute

1 - 5

128 - 131

8.Provision of government office accommodation and utilisation of government sites

1 - 5

132 - 135

9.Occupational safety and health

1 - 5

136 - 139

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

 
140

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 69 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
141

Appendix relating to Part 1: "Introduction"

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

 
142 - 143

Appendix relating to Part 2: "Procedure"

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'

 
144 - 146

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 2016 and the Results of Value for Money Audits (Report No. 67) [P.A.C. Report No. 67]"

Appendix 3Letter dated 26 January 2018 from Director of Buildings

 
147

Appendix 4Letter dated 18 January 2018 from Director of Food and Environmental Hygiene

 
148 - 149

Appendix 5Letter dated 17 January 2018 from Secretary for Security

 
150 - 151

Appendix 6Location of the five commercial buildings and the five footbridges in the Central District

 
152

Appendix 7Letter dated 25 January 2018 from Secretary for Development

 
153 - 154

Appendix 8Letter dated 16 January 2018 from Secretary for Home Affairs

 
155 - 156

Appendix 9Consolidated reply dated 26 January 2018 from Secretary for Environment and Director of Environmental Protection

 
157 - 162

Appendix 10Letter dated 22 January 2018 from Secretary for Labour and Welfare

 
163 - 165

Appendix 11Letter dated 3 April 2017 from Director-General of Civil Aviation

 
166 - 174

Appendix 12Letter dated 21 April 2017 from Secretary for Transport and Housing

 
175 - 179

Appendix 13Letter dated 24 January 2018 from Director-General of Civil Aviation

 
180 - 191

Appendix 14Letter dated 17 January 2018 from Postmaster General

 
192

Appendix 15Consolidated reply dated 29 January 2018 from Director of Food and Environmental Hygiene and Director of Buildings

 
193 - 196

Appendix relating to Part 6: "Committee Proceedings"

Appendix 16Witnesses who appeared before the Committee

 
197

Appendices relating to Chapter 2 of Part 8: "Procurement and maintenance of government vessels"

Appendix 17Speech made by Director of Audit at the public hearing on 8 December 2017

 
198 - 199

Appendix 18Opening statement made by Acting Secretary for Transport and Housing at the public hearing on 8 December 2017

 
200 - 203

Appendix 19Letter dated 28 December 2017 from Secretary for Transport and Housing

 
204 - 211

Appendix 20Letter dated 29 December 2017 from Director of Marine

 
212 - 270

Appendix 21Letter dated 21 December 2017 from Secretary for Financial Services and the Treasury

 
271 - 280

Appendix 22Letter dated 1 December 2017 from Director of Marine

 
281 - 287

Appendix 23Letter dated 18 January 2018 from Secretary for Transport and Housing

 
288 - 290

Appendix 24Letter dated 19 January 2018 from Secretary for Transport and Housing

 
291 - 292

Appendix 25Letter dated 24 January 2018 from Secretary for Transport and Housing

 
293 - 294

Appendix 26Letter dated 17 January 2018 from Director of Marine

 
295 - 310

Appendix 27Letter dated 23 January 2018 from Director of Marine

 
311 - 316

Appendix 28Letter dated 18 January 2018 from Director of Marine

 
317 - 349

Appendix relating to Chapter 3 of Part 8: "Hospital Authority's management of public hospital projects"

Appendix 29Consolidated reply dated 11 January 2018 from Secretary for Food and Health and Chief Executive of Hospital Authority

 
350 - 400

Appendix relating to Chapter 4 of Part 8: "Regulation of non-franchised bus and school private light bus services"

Appendix 30Consolidated reply dated 10 January 2018 from Secretary for Transport and Housing and Commissioner for Transport

 
401 - 421

Appendix relating to Chapter 5 of Part 8: "Operation of the Land Registry"

Appendix 31Consolidated reply dated 17 January 2018 from Secretary for Development and Land Registrar

 
422 - 434

Appendix relating to Chapter 6 of Part 8: "Regulation of hotels and guesthouses"

Appendix 32Letter dated 16 January 2018 from Director of Home Affairs

 
435 - 450

Appendices relating to Chapter 7 of Part 8: "Hong Kong Design Institute"

Appendix 33Letter dated 4 January 2018 from Secretary for Education

 
451 - 452

Appendix 34Letter dated 3 January 2018 from Executive Director of Vocational Training Council

 
453 - 466

Appendices relating to Chapter 8 of Part 8: "Provision of government office accommodation and utilisation of government sites"

Appendix 35Letter dated 5 January 2018 from Secretary for Financial Services and the Treasury

 
467 - 470

Appendix 36Letter dated 5 January 2018 from Government Property Administrator

 
471 - 484

Appendix 37Letter dated 5 January 2018 from Director of Civil Engineering and Development

 
485 - 486

Appendix 38Letter dated 5 January 2018 from Director of Architectural Services

 
487 - 489

Appendix relating to Chapter 9 of Part 8: "Occupational safety and health"

Appendix 39Consolidated reply dated 10 January 2018 from Commissioner for Labour and Director of Health

 
490 - 506

ACRONYMS AND ABBREVIATIONS

 
507 - 510