HK Government Rethinks Water Budget

HK government tried to cut costs by buying water from China

Times are tough in Hong Kong when the government is cutting back on the kind of water it supplies to its staff.

Previously it was Watsons Water, provided by Watsons Group, in other words, a Li Ka-shing company.

But in June, Hong Kong's Government Logistics Department announced it had awarded the three-year drinking water supply contracts to mainland Chinese companies for the first time in a bid to save HK$16 million annually.

A water brand has serious quality issues

Government offices in Kowloon would continue to get water from Watsons Group, but its sub brand called Cool, while those in the New Territories would be supplied the water brand Happy Xishi from Professional Trade International Limited.

And government offices on Hong Kong Island and the Outlying Islands would get the water brand XinLe from Xin Dong Xin Trade Co., Ltd.

Local officials said the selection process used rigorous quality standards despite the cost savings.

However, media outlet HK01 reported XinLe had a history of safety concerns. From 2014 to 2017, the company was repeatedly flagged by China's food safety authorities for exceeding acceptable levels of harmful substances, including bromate, which can be a potential carcinogen, as well as microbial contamination.

So today, the Hong Kong government has announced it has partially terminated its contract with Xin Dong Xin Trade Co., Ltd.

The press release added the Government Logistics Department will decide if it will fully terminate the contract and has referred the incident with the police. 

In the meantime the government has asked Watsons Water to temporarily supply Cool water to offices on Hong Kong Island and the Outlying Islands.

Sometimes you can't be too petty on saving money when it comes to water. You can wear cheaper clothes and shoes, and take cheaper transportation, but you really can't be too cheap when it comes to what you put in your stomach...