The Government Logistics Department (GLD) stated today that it has terminated the contract with its supplier of bottled drinking water, Xin Din Xin Trade Co (XDX), for certain government offices in accordance with contract terms.

XDX was awarded a contract by the GLD in June to supply bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands starting from late June.

Based on the information it received on the supplier's business operation earlier, as well as Police's enforcement actions yesterday, the GLD said it reasonably believed that XDX would not be capable of performing the contract.

Therefore, in accordance with contract terms, the GLD decided today to immediately terminate the relevant contract as well as three other contracts for supply of chemicals which were affiliated with XDX's owners.

Before the new contract takes effect, the GLD has arranged for AS Watson Group (HK) to supply bottled drinking water temporarily to government offices on Hong Kong Island and parts of the outlying islands starting from this week.