XN000022-1986-02-05 — Page 16

WEDNESDAY, FEBRUARY 5, 1986

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REVIEW OF VALUE FOR MONEY STUDIES URGED

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THE PUBLIC ACCOUNTS COMMITTEE RECOMMENDED THAT THERE SHOULD BE AN EARLY REVIEW OF THE POWERS OF THE DIRECTOR OF AUDIT IN CONNECTION WITH THE CONDUCT OF VALUE FOR MONEY STUDIES.

THIS WAS SAID BY THE HON S.L. CHEN WHEN HE TABLED THE EIGHTH ANNUAL REPORT OF THE COMMITTEE AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR CHEN SAID THE AIM OF THE REVIEW WOULD BE TO CLARIFY FIRSTLY WHETHER THE DIRECTOR MIGHT CONDUCT VALUE FOR MONEY STUDIES AND SECONDLY THE BOUNDARIES WITHIN WHICH SUCH STUDIES SHOULD BE CONDUCTED.

HE NOTED THAT THIS WAS +AN UNRESOLVED ISSUE FROM PREVIOUS YEARS+ WHICH HAD BEEN BROUGHT INTO SHARP FOCUS IN THIS YEAR'S AUDIT REPORT.

IT HAD BEEN THE DIRECTOR'S PRACTICE IN COMPILING HIS SUCCESSIVE REPORTS TO CONDUCT VALUE FOR MONEY STUDIES, HE SAID. THE PUBLIC ACCOUNTS COMMITTEE WAS IN NO DOUBT OF THE NEED FOR SUCH STUDIES AND HAD IMPLICITLY ENDORSED THE DIRECTOR'S RIGHT TO CONDUCT THEM BY COMMENTING ON THEM IN ITS OWN REPORTS.

+WHAT IS LESS CLEAR ARE WHAT THE BOUNDARIES OF VALUE FOR MONEY STUDIES ARE, OR SHOULD BE,+ HE SAID.

MR CHEN SAID THE COMMITTEE RECOMMENDED THERE SHOULD BE AN EARLY REVIEW OF THE DIRECTOR'S POWERS SO AS TO PUT THIS MATTER BEYOND ALL DOUBT IN THE FUTURE.

HE STRESSED THERE WAS NOTHING UNUSUAL OR SURPRISING IN THE CONTROVERSY OVER THE AUDITOR'S POWERS, SAYING THAT SIMILAR DEBATES HAD OCCURRED IN ALL THOSE TERRITORIES" WHICH HAD ADOPTED A SIMILAR SYSTEM.

HOWEVER HE CAUTIONED THAT WHILE SOLUTIONS ADOPTED IN OTHER TERRITORIES MIGHT HAVE SOME RELEVANCE HERE, THEY COULD NEVER BE THE FINAL DETERMINANT.

+OUR SOLUTION MUST HAVE REGARD TO THE SPECIAL CIRCUMSTANCES OF HONG KONG AND TO THE DELICATE AND UNIQUE SYSTEM OF CHECKS AND BALANCES WHEREBY ACCOUNTABILITY TO THE LEGISLATIVE COUNCIL IS MAINTAINED ON THE ONE HAND AND THE AUTHORITY OF THE ADMINISTRATION IS UPHELD ON THE OTHER,+ MR CHEN SAID.

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