WEDNESDAY, OCTOBER 12, 1994
17
MINUTES ON PUBLIC ACCOUNTS COMMITTEE TABLED
THE
FOLLOWING IS A SPEECH BY THE ACTING CHIEF SECRETARY, THE HON MICHAEL LEUNG, WHEN INTRODUCING THE GOVERNMENT MINUTES IN RESPONSE ΤΟ REPORT NO. 21A AND 22 OF THE PUBLIC ACCOUNTS COMMITTEE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):
MR PRESIDENT,
LAID ON THE TABLE TODAY ARE THE GOVERNMENT MINUTES WHICH RESPOND RESPECTIVELY TO REPORTS NO. 21A AND NO. 22 OF THE PUBLIC ACCOUNTS COMMITTEE. THE MINUTES SET OUT THE ACTIONS HAS TAKEN, OR IS PLANNING TO TAKE, ON THE RECOMMENDATIONS IN THE REPORTS.
THE GOVERNMENT CONCLUSIONS AND
PUBLIC ACCOUNTS
THE HONOURABLE PETER WONG, CHAIRMAN OF THE COMMITTEE, SPOKE IN THIS COUNCIL ON 1 JUNE 1994 AND 6 JULY 1994 WHEN TABLING THE TWO PAC REPORTS. I WOULD LIKE TO TAKE THIS OPPORTUNITY TO RESPOND TO SOME OF THE POINTS HE MADE.
PAC REPORT NO. 21A DEALS WITH TWO OUTSTANDING ISSUES,
NAMELY, PROVIDENT FUND AND SUPERANNUATION SCHEMES OPERATED BY SUBVENTED ORGANISATIONS, AND THE SALE OF A COMMERCIAL SITE IN GARDEN ROAD.
AS REGARDS THE FIRST ISSUE, WE NOTE THAT THE COMMITTEE'S CONCERN IS FOCUSED PRIMARILY ON THE SUPERANNUATION SCHEMES OF THE UPGC-FUNDED INSTITUTIONS. WE WELCOME THE COMMITTEE'S SUPPORT OF OUR VIEW THAT IT SHOULD BE THE RESPONSIBILITY OF THE INSTITUTIONS CONCERNED TO ENSURE THAT THEIR SCHEMES ARE WELL MANAGED. THE UPGC ACCEPTS THE NEED FOR ACTIVE MONITORING OF THE SCHEMES. IT REQUIRES THE INSTITUTIONS TO SUBMIT ANNUAL REPORTS AND ACTUARIAL ADVICE ON THE FINANCIAL PERFORMANCE OF THEIR SUPERANNUATION SCHEMES. THIS ENABLES THE UPGC TO CONSIDER AND, IF NECESSARY, ADVISE THE INSTITUTIONS ON THE REMEDIAL ACTION TO BE TAKEN TO RECTIFY ANY DOUBTS OVER THE LONGER TERM FINANCIAL VIABILITY OF ANY OF THE SCHEMES.
THE COMMITTEE DREW ATTENTION SPECIFICALLY то THE LONG-TERM FINANCIAL POSITION OF THE SUPERANNUATION SCHEMES OF THE HKU AND THE CUHK. THE TWO INSTITUTIONS HAVE RECENTLY SUBMITTED REPORTS TO THE UPGC ON THEIR PLANS TO ADDRESS THE MATTER. THE UPGC WILL CONSIDER THESE REPORTS AT ITS FORTHCOMING MEETING. WE WILL INFORM THE PAC OF THE STEPS TAKEN BY THE INSTITUTIONS IN DUE COURSE.
ON THE SECOND ISSUE, WE HAVE LOOKED VERY CAREFULLY INTO THE WAY IN WHICH THE SALE OF THE COMMERCIAL SITE IN GARDEN ROAD WAS HANDLED. OUR CONCLUSION IS THAT THERE IS NO EVIDENCE TO SUBSTANTIATE ANY ACT OF MISCONDUCT WHICH WOULD WARRANT DISCIPLINARY PROCEEDINGS. THE EVIDENCE INDICATES THAT THE OFFICERS CONCERNED TOOK ACCOUNT OF A NUMBER OF CONSIDERATIONS WHICH THEY FELT JUSTIFIED THEIR DECISIONS AND ACTED IN GOOD FAITH. THEIR JUDGEMENT MAY NOW BE QUESTIONED, BUT THAT DOES NOT CONSTITUTE MISCONDUCT WARRANTING DISCIPLINARY ACTION. WE WOULD LIKE TO REASSURE MEMBERS THAT THE CENTRAL TENDER BOARD WILL CONTINUE то DISCUSS AND RECORD FULLY ANY SUBSTANTIAL DIFFERENCES IN TENDER PRICES IN CONSIDERING WHETHER TO ACCEPT A TENDER.
/I NOW