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The following is issued on behalf of the Housing Authority:

The Housing Authority will be taking legal action against the contractor responsible for the defective piling works at Shatin Area 14B Phase two (Yuen Chau Kok) after the Authority's Building Committee (BC) had studied and considered the response of Zen Pacific Civil Contractors Ltd (ZPCCL) and the report of the dedicated team.

At the meeting of the BC today (July 3), Members decided that in addition to pursuing legal action against ZPCCL to recover the Authority's losses and damages, disciplinary action should be taken against both ZPCCL and Ngo Kee Construction Company Ltd (Ngo Kee) which is at present a provisionally listed building contractor eligible to tender for building works with the Authority.

A spokesman for the Authority said the BC is of the view that ZPCCL should be delisted from the Authority's lists of large-diameter bored piles and demolition contractors. Ngo Kee, on the other hand, should be suspended from tendering while legal action is in progress and subject to review by the BC at the end of the legal process.

"Both companies will have a fair opportunity to present its case to the Housing Department's List Management Committee (LMC) which will, after due process, make its recommendations to the Building Committee for final decision on disciplinary action," the spokesman said.

At the same time, the Authority will inform all Government bureaux and departments, as well as public organisations of its actions to take.

"The LMC would implement more stringent control of companies applying for listing on the HA Lists of Contractors and would refer to BC for action any application by companies with the same controlling interests as those previously disciplined under the LMC rules."

Meanwhile, the Building Committee extended its deepest apology to the community on recent events concerning construction quality and regretted the passage of the no-confidence motion by the Legislative Council last Wednesday (28 June 2000).

"We respect with sadness the resignation of Dr Rosanna Wong as Chairman of the Housing Authority," the spokesman said, adding that the Committee will continue to support the Director of Housing in carrying out the reforms.

End/Monday, July 3, 2000

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