21
Thursday, March 14, 1974
MCKINSEY RECOMMENDATIONS MUST BE FULLY IMPLEMENTED
Control of Finance Companies Urged
The new planning processes for monitoring and control of
departmental expenditure as recommended in the McKinsey Report should
be fully implemented so that more stringent and effective control can
be exercised within the Civil Service, the Hon. Li Fook-wo said today.
Speaking at the resumed Budget debate, he expressed grave
concern over the huge amount of financial wastage in the government as
indicated by the Director of Audit in his 1972/73 annual report.
Mr. Li cited a few items from the report which covered, among
others, huge sums of Miscellaneous Advances, outstanding arrears of
revenue, overpayments of overtime allowance to government servants and
rental paid on unoccupied premises.
"If all the above waste and mismanagement had not taken place,"
Mr. Li said, "the Financial Secretary might not have found it necessary
to propose some of the tax increases, Tf
In line with his plea for greater fiscal stringency within the
civil service, he urged the government to build and own enough quarters
and accommodations for its own use.
"If this policy is adopted, it may ultimately lead to elimination
of the heavy expenditure on hotel charges, private tenancies and office
rentals,
"Mr. Li seid.
/In view