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The following is issued on behalf of the Housing Authority:

An independent panel on accountability will be set up under the Housing Authority (HA) to establish areas of responsibilities in the substandard piling case at a Home Ownership Scheme court under construction in Shatin, the Authority decided today (Thursday).

The panel will complete its investigation and report to the Authority in three months* time. The report will then be submitted to the Chief Executive and the Legislative Council, together with other investigation reports on recent events concerning substandard piling works.

Expressing shock and outrage at the case, the Chairman of the Authority, Dr Rosanna Wong, pledged to confront, address and resolve the problems at hand.

"We will take up responsibility, strive to find out the root of the problem and be accountable to the public," she vowed, assuring that the Authority always takes structural safety and residents' interest upfront.

The case was discovered early this month when discrepancies were found between the recorded pile lengths and the actual lengths of two of the five blocks under construction at Shatin Area 14B Phase two. The Authority has since suspended building works there.

"Such gross and heinous acts of misconduct must be condemned," she told a meeting of the Authority today, adding that a hardline had to be taken against those who blatantly commit crimes and ignore public safety.

Dr Wong also regretted the suspected involvement of Housing Department staff in corruption and the failure of the Department's monitoring mechanism to prevent the problem from occurring.

"Any staff found to be negligent, whether of ranks high or low, will be referred to the Civil Service Bureau for further investigation and disciplinary action."

To ensure the independence of the investigation panel, it will be constituted exclusively by members outside of the Authority and the Department. It will establish the facts of the case and identify any areas of negligence, including any misconduct or malpractice, of each of the officers or parties involved.

It will also recommend to the Chairman of the Authority if any disciplinary, legal or other action should be taken, as well as any improvements in responsibilities, contract conditions and procedures for managing piling contracts.

On the piling case itself, Dr Wong warned against hasty decision on the future of the blocks. "We have to finish site investigation for all the piles there as we need to gather sufficient evidence to ascertain the problem and confirm responsibility," she said.

Noting that a lot is at stake in the case, including the possibility of litigation over substantial claims and counter claims, Dr Wong said the Authority would take the most decisive action to protect public interest once it has all the evidence required. A final decision is expected by early March, the same time as the completion of the current review of all 106 sites under construction.

Dr Wong went on to acknowledge the painful criticisms facing the Authority in recent weeks and suggested that they be taken as the drive for reform.

She also suggested that a departmental special team be formed to oversee the consultation for "Quality Housing - Partnering for Change". The consultation document was endorsed for publication at today*s meeting.

The special team, which is to report to the Authority's Building Committee, will develop, monitor and oversee the implementation plan of agreed recommendations.

At the same time, an independent consultant will be appointed to undertake a system audit of the Department*s housing production process, including supervision, accountability and efficiency.

Dr Wong stressed the Authority's commitment to enhancing building quality. "We will adopt an open, rational and responsible approach to handle the problems."

Her sentiments were echoed by the Director of Housing, Mr Tony Miller who also pledged unflinching support to reform.

Following the Authority's approval today, a series of brainstorming sessions, meetings and public forum will be arranged to collect public feedback of the 40 major recommendations contained in the consultation document. The consultation period ends on 31 March 2000.

End/ Thursday, 27 January, 2000

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