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The following is issued on behalf of the Housing Authority:

The Housing Authority today (May 25) released the investigation report prepared by the independent Panel on Accountability set up to establish the facts and areas of responsibility in the substandard piling works at Shatin Area 14B Phase 2 for consideration by the Authority.

At a joint briefing of the Authority and its Building Committee (BC) this morning, Members noted the findings of the report, its proposals on legal or disciplinary action and recommendations on improvements in systems and procedures.

The Chairman of the Authority, Dr Rosanna Wong, said the Authority would study the report in detail before deciding on the way forward. "We will refrain from making any comment on the report before a decision is made," she said.

"In the meantime, we will not award any new works contract to the contractor and subcontractor involved in the case, nor will we allow any former director or staff of the subcontractor, and the Registered Structural Engineer identified in the report from working in the Authority's projects," she said.

On disciplinary action for Housing Department staff, Dr Wong said three of the nine named staff who are currently under investigation by the Independent Commission Against Commission (ICAC) have been interdicted since January 2000. The remaining have all been transferred out from their original duties.

"An investigation panel independent of the Housing Department will be set up by the Government to follow up on staff accountability," she said, adding that any disciplinary action will be conducted in accordance with established policies and practices. The findings of the panel will be referred to the Civil Service Bureau.

Dr Wong explained that the decision to release the report in full was taken after considering the severity of the malpractice involved, the level of public concern in this case and the relevant legal implications.

"We respect the public*s right to know on this very unique case and believe they will be able to appreciate the reasons behind the report's proposals and recommendations better if the full contents are published," she said. "This arrangement is also agreeable to the the Panel Chairman and the ICAC."

However, a spokesman of the Authority stressed that the contents of the report represent the views of the Panel only and not those of the Authority, nor the BC. He also advised against any discussion on the liability or responsibility of any persons involved in public as the findings and conclusions are litigious and contentious.

"We will initiate a process in which detailed impact assessment will be prepared and considered and parties concerned may respond to the report before taking a decision on whether and how to implement the Panel's proposed sanctions and recommendations," the spokesman said, adding that a response to the report will be made by the BC within the next two weeks.

Dr Wong thanked the Panel for its enormous and intensive efforts in undertaking a very thorough investigation. Chaired by retired Chairman of the Hongkong and Shanghai Banking Corporation Ltd, Mr John Strickland, the Panel had spent the past three months interviewing a large number of people from the construction industry in general and persons involved in the project in particular. It had also reviewed a very large quantity of documents.

Of the 13 recommendations put forward by the Panel to improve responsibilities, contract conditions and procedures, Dr Wong said the Authority would study in detail and have them integrated into the quality reform package currently being implemented by the Authority.

A copy of the report has been submitted to the Chief Executive and the ICAC. It has also been forwarded to the Housing Panel of the Legislative Council and the Construction Industry Review Committee today.

"The Authority will continue to maintain close co-operation with the ICAC to crack down on suspected corruption," she said.

Dr Wong stressed that quality improvement remains the Authority's long term objective and that a rational and responsible approach will be taken to handle the report.

Meanwhile, the BC approved at its meeting today to award the contract for the demolition of blocks D and E of Shatin Area 14B Phase 2.

In view of the scale and complexity of the demolition work and the site's proximity to a school and hospital, extra precautionary and safety measures will be stipulated in the contract to minimise the disturbance during the nine-month contract period.

"Double-deck covered walkway, double scaffolding and protective screens will be constructed on site and the contractor is required to appoint a Registered Structural Engineer to prepare the method statement of demolition work," the spokesman said, adding that noise levels generated will be closely monitored.

End/Thursday, May 25, 2000

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