REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 64 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2015

P.A.C. Report No. 64





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

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.Buildings Department's actions on unauthorized building works

A.Introduction

1 - 11

5 - 9

B.Implementation of Government policies on unauthorized building works

12 - 43

9 - 26

C.Handling of public reports

44 - 56

26 - 32

D.Actions through large-scale operations

57 - 64

32 - 36

E.Follow-up actions on removal orders

65 - 80

36 - 41

F.System for supporting enforcement actions

81 - 82

41 - 42

G.Way forward

83 - 91

42 - 45

H.Conclusions and recommendations

92 - 94

46 - 65

2.Operation of the Government Flying Service

A.Introduction

1 - 10

66 - 72

B.Provision of flying services

11 - 20

72 - 75

C.Management of aircrew members

21 - 31

75 - 81

D.Maintenance of aircraft

32 - 41

81 - 86

E.Procurement of aircraft and spare parts

42 - 52

86 - 91

F.Way forward

53

91 - 92

G.Conclusions and recommendations

54 - 56

92 - 110

3.Public cooked food markets managed by the Food and Environmental Hygiene Department

A.Introduction

1 - 8

111 - 115

B.Vacancy rates of markets

9 - 16

115 - 118

C.Provision of facilities in markets

17 - 27

118 - 124

D.Management of market stalls

28 - 34

124 - 128

E.Management of stall rentals and charges

35 - 36

128 - 131

F.Way forward

37 - 43

131 - 133

G.Conclusions and recommendations

44 - 46

133 - 144

4.Management of water supply and demand

1 - 5

145 - 147

5.Hong Kong Sports Institute Limited

1 - 6

148 - 150

6.Employees' compensation for injuries and fatalities

1 - 6

151 - 152

7.Education Bureau Kowloon Tong Education Services Centre

1 - 6

153 - 155

8.Rehabilitation services provided by the Correctional Services Department

1 - 6

156 - 157

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

 
158

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 64 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
159

Appendix relating to Part 1: "Introduction"

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

 
160 - 161

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'

 
162 - 164

Appendices relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
165 - 166

Appendix 4Introductory Remarks by Chairman of the Public Accounts Committee, Hon Abraham SHEK Lai-him, GBS, JP at the first public hearing of the Committee in respect of the Director of Audit's Report No. 64 on 5 May 2015

 
167 - 168

Appendices relating to Chapter 1 of Part 4: "Buildings Department's actions on unauthorized building works"

Appendix 5Opening statement made by Secretary for Development at the public hearing on 5 May 2015

 
169 - 171

Appendix 6PowerPoint materials used by Director of Buildings at the public hearing on 5 May 2015

 
172 - 181

Appendix 7Letter dated 15 June 2015 from Director of Buildings

 
182 - 196

Appendix 8Letter dated 20 May 2015 from Director of Buildings

 
197 - 207

Appendix 9Major duties of the three Divisions and one Section in the Buildings Department responsible for handling unauthorized building works and implementing the building safety and maintenance enforcement programmes

 
208 - 209

Appendix 10Manpower and key performance indicators of the three Divisions and one Section in the Buildings Department responsible for handling unauthorized building works and implementing the building safety and maintenance enforcement programmes

 
210

Appendix 11Clause 3(A) of the Schedule of Fees under the Buildings Department's standard consultancy agreement

 
211 - 212

Appendix 12Clauses 5.3.21 and 8.2 of the Brief under the Buildings Department's standard consultancy agreement

 
213 - 214

Appendix 13Targets for clearing outstanding removal orders by 31 March 2015

 
215

Appendix 14Guidelines for Instituting Prioritized Prosecution Against Non-complied Statutory Orders and Prosecution Policy for Prompt and Rigorous Action

 
216 - 224

Appendix 15Action workflow of the Buildings Department to recover the costs from the pertinent owners upon completion of default works

 
225 - 226

Appendix 16Summary of improvement measures taken/to be taken by the Buildings Department in response to the Audit Report and enquiries of the Public Accounts Committee at the public hearings

 
227 - 230

Appendix 17Letter dated 15 June 2015 from Secretary for Development

 
231 - 233

Appendices relating to Chapter 2 of Part 4: "Operation of the Government Flying Service"

Appendix 18Organization chart showing the approved establishment and working strength of the Government Flying Service

 
234

Appendix 19Submission dated 4 May 2015 from Government Flying Service Aircraft Technicians Union

 
235 - 236

Appendix 20Submission dated 6 May 2015 from Government Flying Service Aircraft Engineers Association

 
237 - 238

Appendix 21Submission dated 6 May 2015 from Government Flying Service Aircrewman Officers Association

 
239 - 241

Appendix 22Submission dated 7 May 2015 from Government Flying Service Pilots Union

 
242 - 243

Appendix 23Letter dated 1 June 2015 from Controller of Government Flying Service

 
244 - 290

Appendix 24Opening statement made by Secretary for Security at the public hearing on 9 May 2015

 
291 - 293

Appendix 25Letter dated 1 June 2015 from Controller of Government Flying Service

 
294 - 319

Appendix 26Audit/inspection reports from the Civil Aviation Department and overseas organizations on the Government Flying Service operation

 
320 - 364

Appendix 27Standing Accounting Instructions issued by the Treasury

 
365

Appendix 28Letter dated 20 May 2015 from Secretary for Financial Services and the Treasury

 
366 - 367

Appendices relating to Chapter 3 of Part 4: "Public cooked food markets managed by the Food and Environmental Hygiene Department"

Appendix 29Organization chart of a typical District Environmental Hygiene Office in the Food and Environmental Hygiene Department

 
368

Appendix 30Establishment of the Food and Environmental Hygiene Department staff responsible for management of cooked food markets, cooked food centres and cooked food hawker bazaars as at 30 April 2015

 
369 - 370

Appendix 31Opening statement made by Secretary for Food and Health at the public hearing on 11 May 2015

 
371 - 372

Appendix 32Opening statement made by Director of Food and Environmental Hygiene at the public hearing on 11 May 2015

 
373 - 376

Appendix 33Letter dated 2 June 2015 from Secretary for Food and Health

 
377 - 389

Appendix 34Executive summary of the survey on the viability of three public markets and six cooked food hawker bazaars

 
390 - 407

Appendix 35Letter dated 12 June 2015 from Secretary for Food and Health

 
408 - 414

Appendix 36Correspondence between the Food and Environmental Hygiene Department, the Architectural Services Department and other relevant parties on upgrading the electricity supply for Kwun Tong Ferry Concourse Cooked Food Market

 
415 - 489

Appendix 37Guidelines on electrical safety and use of electrical appliances in cooked food markets/cooked food centres

 
490

Appendix 38Guidelines for termination of tenancy agreement on account of commission of offences

 
491

Appendix 39Guidelines on termination of tenancy agreement due to breach of tenancy clauses and conditions

 
492 - 493

Appendix 40Sample letter to tenants on the provisions including the condition pertaining to the proper use of the communal seating area

 
494 - 495

Appendix 41Notice on occupation of tables and chairs in the communal seating area

 
496

Appendix 42Specimen of the tenancy agreement between the Food and Environmental Hygiene Department and tenant

 
497 - 508

Appendix 43Reply dated 25 June 2015 from Secretary for Food and Health

 
509

Appendix relating to Chapter 4 of Part 4: "Management of water supply and demand"

Appendix 44Letter dated 15 May 2015 from Director of Water Supplies

 
510 - 512

Appendices relating to Chapter 5 of Part 4: "Hong Kong Sports Institute Limited"

Appendix 45Letter dated 5 June 2015 from Chief Executive of Hong Kong Sports Institute

 
513 - 522

Appendix 46Letter dated 8 June 2015 from Secretary for Home Affairs

 
523 - 526

Appendix relating to Chapter 6 of Part 4: "Employees' compensation for injuries and fatalities"

Appendix 47Letter dated 1 June 2015 from Commissioner for Labour

 
527 - 544

Appendix relating to Chapter 7 of Part 4: "Education Bureau Kowloon Tong Education Services Centre"

Appendix 48Letter dated 2 June 2015 from Secretary for Education

 
545 - 554

Appendix relating to Chapter 8 of Part 4: "Rehabilitation services provided by the Correctional Services Department"

Appendix 49Letter dated 29 May 2015 from Commissioner of Correctional Services

 
555 - 560

ACRONYMS AND ABBREVIATIONS

 
561 - 563