The Government has terminated all contracts associated with the owners of Xin Ding Xin Trade Co. (XDX), with immediate effect.

Based on information obtained by the Government Logistics Department (GLD) on the firm’s operations, as well as recent enforcement actions against it by government departments, the Government said it reasonably believes that XDX, and companies associated with its owners, are no longer capable of fulfilling the contracts.

Following the GLD’s termination of a contract with XDX for the supply of bottled drinking water to government offices, and three other contracts with associated companies for the supply of chemicals, the Financial Services & the Treasury Bureau has promptly informed bureaus and departments to terminate all of their contracts with the companies.

The Government said it had immediately terminated all relevant contracts. These include a contract for the supply of chemicals awarded by the Drainage Services Department (DSD), worth some $6 million, and a contract for data entry services awarded by the Fire Services Department (FSD), worth some $5 million respectively.

As regards the GLD’s contract with XDX for the supply of bottled drinking water to government offices, pursuant with contract terms the Government holds a deposit of about $1 million from the firm.

The Government is entitled to deduct funds from the contract deposit to recover losses arising from contract termination and reserves all rights to take actions against XDX.

Meanwhile, the GLD will continue to co-operate fully with the investigations of law enforcement agencies.

The GLD, DSD and FSD will continue to on matters relating to the contract, including how to recover the Government’s losses from the companies in accordance with contract terms. Any illegal activities identified in the contracts will be referred to law enforcement agencies for follow-up.