Public Accounts Committee



REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 54 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2010

P.A.C. Report No. 54






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

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4

3

The Government's Response

5

3

Part 3Committee 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 4Chapter

1.Construction of pedestrian crossing facilities

1 - 5

5 - 6

2.Development of EcoPark

A.Introduction

1 - 2

7

B.Planning of EcoPark

3 - 16

7 - 13

C.Administration of management contract

17 - 25

14 - 16

D.Phase 1 development

26 - 41

16 - 21

E.Phase 2 development

42 - 49

22 - 25

F.Conclusions and recommendations

50

25 - 31

3.Hong Kong Chinese Orchestra Limited

A.Introduction

1 - 6

32

B.Criteria for evaluating subvented performing arts groups

7 - 29

32 - 42

C.Governance and management

30 - 41

42 - 45

D.Core activities

42 - 77

46 - 57

E.Human resources management

78 - 92

57 - 61

F.Other administrative issues

93 - 98

62 - 63

G.Conclusions and recommendations

99

63 - 70

4.Provision of postal services

1 - 7

71 - 73

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



74

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 54 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT



75

Appendix relating to Part 1: "Introduction"

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



76 - 77

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'



78 - 80

Appendices relating to Part 3: "Committee Proceedings"

APPENDIX 3Witnesses who appeared before the Committee



81

APPENDIX 4Introductory 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. 54 on Tuesday, 11 May 2010



82 - 83

Appendix relating to Chapter 1 of Part 4: "Construction of pedestrian crossing facilities"

APPENDIX 5Letter of 8 June 2010 from the Commissioner for Transport



84 - 85

Appendices relating to Chapter 2 of Part 4: "Development of EcoPark"

APPENDIX 6Information note provided by the Environment Bureau and the Environmental Protection Department in May 2010



86 - 91

APPENDIX 7Letter of 22 June 2010 from the Director of Environmental Protection



92 - 93

APPENDIX 8Letter of 27 May 2010 from the Secretary for Financial Services and the Treasury



94 - 96

APPENDIX 9Letter of 25 May 2010 from the Director of Environmental Protection



97 - 102

APPENDIX 10Letter of 4 June 2010 from the Director of Environmental Protection



103 - 105

Appendices relating to Chapter 3 of Part 4: "Hong Kong Chinese Orchestra Limited"

APPENDIX 11Opening statement made by the Secretary for Home Affairs at the public hearing on 11 May 2010



106 - 107

APPENDIX 12Opening statement made by the Council Chairman of the Hong Kong Chinese Orchestra Limited ("HKCO") at the public hearing on 11 May 2010



108 - 109

APPENDIX 13Letter of 4 May 2010 from the Secretary for Home Affairs



110 - 141

APPENDIX 14Letter of 19 May 2010 from the Secretary for Home Affairs



142 - 147

APPENDIX 15Letter of 8 June 2010 from the Secretary for Home Affairs



148 - 152

APPENDIX 16Letter of 14 June 2010 from the Director of Audit



153 - 155

APPENDIX 17Letter of 18 May 2010 from the Director of Audit



156 - 157

APPENDIX 18Letter of 11 June 2010 from the Secretary for Home Affairs



158 - 159

APPENDIX 19Letter of 4 May 2010 from the Executive Director, HKCO



160 - 168

APPENDIX 20Letter of 10 June 2010 from the Executive Director, HKCO



169 - 178

APPENDIX 21Letter of 8 June 2010 from the Executive Director, HKCO



179 - 182

APPENDIX 22Letter of 10 May 2010 from the Director of Audit



183 - 184

Appendix relating to Chapter 4 of Part 4: "Provision of postal services"

APPENDIX 23Letter of 11 June 2010 from the Postmaster General



185 - 192

ACRONYMS AND ABBREVIATIONS



193