APPENDIX D
Introductory Remarks by the Chairman of the Public Accounts Committee,
the Hon. S. L. CHEN, C.B.E., J.P., at the first public hearing of the Committee on Monday 25 November 1985
As this is the first public meeting of the Public Accounts Committee in this legislative session, before I open this hearing formally, I should like to say a few words of introduction.
Firstly it is my pleasure to welcome Mr. Allen LEE, Mr. Ho Sai-chu and Mr. LEE Yu-tai who have joined the Committee for the first time. I should also like to record the Committee's warm appreciation and thanks to the three departing Members, Mr. Peter C. WONG, Mr. W. C. L. BROWN and Mr. Andrew So for their dedicated service to the Committee and the high quality of their work.
Subject to the broad provisions of the Standing Orders of the Legislative Council the Committee determines its own procedures. Last year for the first time the Committee decided that, as far as possible, it would hold its meetings in public. This practice will continue, although as last year, the Committee reserves the right to hold its meetings in camera, if we judge that necessary, in the interests of commercial security and confidence. Last year the Committee also decided that it would not consider written evidence except as an adjunct to the personal appearance of a Controlling Officer. This practice will continue this year but the Committee has agreed to a further development of the procedure in that it has fully endorsed the Government's decision to table in the Legislative Council a written Government Paper in response to certain policy issues raised in the Director of Audit's Report. Having regard to the complexity of these issues and their need to be considered in the Legislative Council as a whole, the Committee believes that this is a sensible way forward. Having said that it is not our intention that the policy paper should be regarded as a substitute for a personal appearance by the heads of the branches and departments concerned where this is necessary to assist the Committee come to its conclusions. Accordingly, and where appropriate, we will be asking these officials to give evidence at our hearings.
The Committee's task is to consider the Report of the Director of Audit on the Government's accounts for the last financial year. The Director of Audit's own investigations are necessarily selective; ours are even more selective still. We have decided which parts of the Director's Report indicate the most serious irregularities or shortcomings in the Government's financial control. On these topics we shall be calling as witnesses the respective Controlling Officers, that is the heads of branches or departments into whose stewardship passes the money which the Legislature votes each year under the Appropriation Bill. And in one case we have also invited the representative of an organization which is not directly part of the Government but which uses public funds granted by the Government.
The questions which we shall ask the Controlling Officers are intended to establish the facts surrounding each case. We are not here to prosecute or persecute. In each case we want to be satisfied on three points—
whether there has been a failure of proper financial control
if so, why this happened
and what has been done and will be done to ensure that the problem does not recur.
At these public hearings the Committee will simply be asking questions. After the hearings the Committee meets in private to discuss the evidence which it has heard, and to come to its own conclusions. These conclusions and recommendations will not be known to the public until the Committee has reported back to the Legislative Council. That will be on 5 February 1986, when our Report is tabled and published. Until then we will not, as a Committee or individually, be making any public comments on these cases.
I now have the pleasure to declare the Committee to be in formal session.
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