SUPPLEMENTAL REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 60 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



November 2013

P.A.C. Report No. 60A





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

3

The Government's Response

5

3

Part 3Committee Proceedings

Meetings

1

4

Arrangement of the Report

2 - 3

4

Acknowledgements

4

4

Part 4Preventive education and enlisting public support against corruption

A.Introduction

1 - 14

5 - 11

B.Summoning Mr Timothy TONG Hin-ming, former Commissioner, Independent Commission Against Commission ("ICAC"), to attend before the Committee to give evidence

15 - 17

12

C.Work of the Community Relations Department

18 - 37

12 - 20

D.Expenditures of the ICAC

38 - 139

20 - 60

E.Expenditure control on official entertainment

140 - 162

60 - 68

F.Legal basis for the ICAC to assist other States Parties to the United Nations Convention Against Corruption ("UNCAC") in developing and implementing specific measures for the prevention of corruption in accordance with the provisions of paragraph 3 of Article 6 of the UNCAC

163 - 168

68 - 72

G.Conclusions and recommendations

169 - 215

72 - 89

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

 
90

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 60 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
91

Appendix relating to Part 1: "Introduction"

Appendix 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region ("HKSAR")

 
92 - 93

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 HKSAR - 'Value for Money Audits'

 
94 - 96

Appendices relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
97

Appendix 4Introductory remarks by the Deputy Chairman of the Public Accounts Committee, Hon Paul TSE Wai-chun, JP, at the first public hearing of the Committee in respect of the Director of Audit's Report No. 60 on Saturday, 27 April 2013

 
98 - 99

Appendices relating to Part 4: "Preventive education and enlisting public support against corruption"

Appendix 5The ICAC's Commission Standing Orders ("CSO") on "Entertainment Expenses"

 
100 - 102

Appendix 6Press release issued by the Department of Justice on 14 May 2013

 
103 - 104

Appendix 7Letter of 16 May 2013 from the Commissioner, ICAC

 
105 - 106

Appendix 8Letter of 28 October 2013 from the Commissioner, ICAC

 
107

Appendix 9Letter of 15 November 2013 from Clerk, Public Accounts Committee to the Commissioner, ICAC

 
108

Appendix 10Opening statement made by the Commissioner, ICAC at the public hearing on 18 May 2013

 
109 - 113

Appendix 11Speaking note of the Director of Audit at the public hearing on 18 May 2013

 
114 - 115

Appendix 12Letter of 24 May 2013 from the Director of Public Prosecutions

 
116 - 117

Appendix 13Organization chart of the Community Relations Department ("CRD") of the ICAC

 
118

Appendix 14Speaking note of the Director of the Community Relations at the public hearing on 4 June 2013

 
119 - 123

Appendix 15Papers presented to the ICAC's Citizens Advisory Committee on Community Relations ("CACCR") for endorsing the changing work strategy of the CRD from 2003-2004 to 2012-2013

 
124 - 215

Appendix 16Extract of the minutes of the meeting of the CACCR on the deliberations of the CACCR Paper 11/2009 "Mainland Liaison Work of the ICAC - Review and the Way Forward"

 
216 - 218

Appendix 17Established posts and staff strength of the CRD from 2003-2004 to 2012-2013

 
219

Appendix 18Justifications for the ICAC to operate seven Regional Offices

 
220 - 223

Appendix 19Annual operating cost of each of the seven Regional Offices of the ICAC from 2007-2008 to 2011-2012

 
224 - 230

Appendix 20Annual funding and expenditure of the ICAC from 2003-2004 to 2012-2013

 
231

Appendix 21Annual funding and expenditure of the CRD from 2003-2004 to 2012-2013

 
232 - 235

Appendix 22Numbers of Owner's Corporations, organizations and people reached by the CRD from 2003 to 2007 through talks, visits/meetings and seminars/workshops

 
236 - 237

Appendix 23Numbers of organizations and people reached by the CRD's multi-faceted activities from 2003 to 2007

 
238

Appendix 24Numbers of people reached by the CRD's meet-the-public sessions from 2003 to 2007

 
239

Appendix 25Numbers of the CRD's community activities with sponsorship from 2003 to 2007

 
240 - 241

Appendix 26Breakdown of the General Departmental Expenses of the ICAC from 2003-2004 to 2012-2013

 
242 - 244

Appendix 27Official entertainment expenses of the CRD charged to the CRD's entertainment vote from 2003-2004 to 2012-2013

 
245 - 270

Appendix 28Official entertainment expenses of the CRD charged to the CRD's publicity vote from 2003-2004 to 2012-2013

 
271 - 284

Appendix 29Amounts of expenditure under the ICAC's official entertainment (common services) vote from 2006-2007 to 2012-2013

 
285

Appendix 30Official entertainment expenditure relating to the activities of the CRD charged to the official entertainment (common services) vote from 2006-2007 to 2012-2013

 
286 - 289

Appendix 31Details of the stock of wine and hard liquor kept by the CRD from 2003-2004 to 2012-2013

 
290

Appendix 32Details of the stock of wine and hard liquor kept by the Administration Branch of the ICAC ("ADM") from 2007-2008 to 2012-2013

 
291

Appendix 33Breakdown of the stock of the hard liquor by types kept by the CRD from 2003-2004 to 2012-2013

 
292

Appendix 34Breakdown of the stock of the hard liquor by types kept by the ADM from 2007-2008 to 2012-2013

 
293

Appendix 35The amounts spent on wine and hard liquor procured by the CRD and the ADM respectively during the tenure of the former Commissioner, ICAC, Mr Timothy TONG Hin-ming

 
294

Appendix 36Opening statement made by the Commissioner, ICAC at the meeting of the LegCo Panel on Security on 27 May 2013

 
295 - 300

Appendix 37Expenditures on duty visits outside Hong Kong from 2006-2007 to 2012-2013

 
301

Appendix 38Details of a duty visit to Shenzhen headed by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, on 19 August 2011

 
302

Appendix 39Breakdown of the total annual expenditure of the ICAC by department from 2003-2004 to 2012-2013

 
303

Appendix 40Justifications for the setting up of the Office of Strategic Research

 
304

Appendix 41Breakdown of the annual expenditure of the ADM from 2003-2004 to 2012-2013

 
305 - 306

Appendix 42Annual budget and expenditure of the Centre of Anti-Corruption Studies ("CACS") from 2009-2010 to 2012-2013

 
307

Appendix 43Reasons for the transfer of the CACS from the ADM to the Corruption Prevention Department ("CPD") and subsequently back to the ADM in September 2012

 
308

Appendix 44Extracts of the minutes of meetings on the setting up of the CACS

 
309 - 310

Appendix 45Headcount of the CACS from 2008-2009 to 2012-2013

 
311

Appendix 46Information on the hiring of Professor YUAN Bo-shun as Senior Consultant of the CACS

 
312 - 313

Appendix 47Types of work carried out/completed by Professor YUAN Bo-shun during his tenure at the CACS

 
314

Appendix 48Activity summary of the CACS from 2008-2009 to 2012-2013

 
315 - 317

Appendix 49The votes to which the procurement of wine and hard liquor by the CRD and the ADM were charged during the tenure of the former Commissioner, ICAC, Mr Timothy TONG Hin-ming

 
318

Appendix 50Information on the official lunches and dinners hosted by the ICAC for the Liaison Office of the Central People’s Government ("CPG") in the HKSAR and Consul General's respectively from 2003-2004 to 2012-2013

 
319 - 320

Appendix 51Details of the 35 duty visits outside Hong Kong headed by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, from 2007-2008 up to 30 June 2012

 
321 - 336

Appendix 5235 applications made by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, for attending duty visits outside Hong Kong

 
337 - 371

Appendix 53Itinerary of the duty visit to Beijing-Yunnan-Lijiang (11 to 17 January 2009)

 
372 - 373

Appendix 54Information on the Hong Kong Mainland Liaison Office of the ICAC

 
374

Appendix 55Chronological account of organizing the duty visit to Beijing-Yunnan-Lijiang (11 to 17 January 2009)

 
375

Appendix 56Procurement of air passages and arrangement of accommodation for the Lijiang leg of the duty visit to Beijing-Yunnan-Lijiang (11 to 17 January 2009)

 
376

Appendix 57A sample application made by a former Commissioner, ICAC to the CE for attending a duty visit outside Hong Kong

 
377 - 379

Appendix 58Itinerary of the duty visit to Beijing-Chengdu-Leshan (16 to 23 May 2010)

 
380 - 381

Appendix 59Application made by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, to the CE for attending a duty visit to Hangzhou (14 to 17 November 2008)

 
382

Appendix 60Itinerary of the duty visit to Hangzhou (14 to 17 November 2008)

 
383

Appendix 61Itinerary of the duty visit to Beijing and Guangxi Zhuang Autonomous Region (25 to 29 May 2008)

 
384 - 385

Appendix 62Itinerary of the duty visit to Salvador, Brazil and London, United Kingdom (8 to 14 April 2010)

 
386 - 387

Appendix 63Expenditure of the thematic seminar ICAC co-organized with the Ministry of Supervision and the Commission Against Corruption of Macao in Shenzhen from 21 to 23 January 2008

 
388

Appendix 64Details of the six duty visits outside Hong Kong led by the Commissioner, ICAC, Mr Simon PEH Yun-lu, from July 2012 to June 2013

 
389 - 391

Appendix 65Six applications made by the Commissioner, ICAC, Mr Simon PEH Yun-lu, to the CE for attending duty visits outside Hong Kong

 
392 - 397

Appendix 66ICAC's CSO on "Acceptance of Advantages"

 
398 - 413

Appendix 67A list of gifts presented by Mr Timothy TONG Hin-ming during his tenure as Commissioner, ICAC to government officials of different places and paid out of public funds

 
414 - 439

Appendix 68Names and official titles of the persons attending the dinner on 6 December 2011

 
440 - 441

Appendix 69Names and official titles of the persons attending the dinner on 8 December 2011

 
442 - 447

Appendix 70Information on the number of meals with cost of wine procured separately not included in the total cost of the meal

 
448 - 449

Appendix 71The leave period taken by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, in July 2009

 
450

Appendix 72Confirmation from the ICAC that it was the usual practice of the CRD not including the cost of wine separately procured in the total cost of the meals before the tenure of the former Commissioner, ICAC, Mr Timothy TONG Hin-ming

 
451

Appendix 73Chronological account of arranging the dinner on 18 September 2007 by the CRD

 
452 - 454

Appendix 74Delegation of power in making and modifying the CSO under section 11 of the ICAC Ordinance (Cap. 204)

 
455

Appendix 75A copy of the Depository Notifications of the United Nations announcing that the CPG has designated the ICAC as the authority for the HKSAR to assist other States Parties in the prevention of corruption in accordance with the UNCAC

 
456 - 458

Appendix 76Details of the review undertaken by the relevant bureaux/departments (including the ICAC) to amend the ICAC Ordinance

 
459 - 484

Appendix 77Expenditures of the activities undertaken by the ICAC to fulfil the duties of assisting other States Parties to the UNCAC and the implication of such activities on manpower resources from 2006-2007 to 2012-2013

 
485 - 490

ACRONYMS AND ABBREVIATIONS

 
491 - 492