TNAG-1415-FCO40-1896-Public-finance-in-Hong-Kong-1985 — Page 132

53.

With regard to the provision of back-up facilities in the event of disaster, the Computer Committee decided that a disaster plan with a list of vital systems, and the reasons for their inclusion, should be prepared, together with an indication of what such a plan is providing. After review by the Computer Committee the plan, without costs, would be forwarded to the Chief Secretary's Committee to establish the needs, subsequent to which costs would be determined. The Computer Committee subsequently requested all departments to provide the necessary information on all major and critical systems by the end of July 1985.

54.

I have been advised recently by the Secretary for Administrative Services and Information that in the light of the information provided by the departments

a draft paper for the Chief Secretary's Committee is being prepared for submission to the next Computer Committee meeting in October 1985, and if approved the paper will be formally submitted to the Chief Secretary's Committee for a decision on priorities. The Secretary hopes that the Administration would be in a position to come to some definitive conclusion and to plan the way ahead by the end of 1985.

55.

Handling and transportation of Government stores. An audit review of the transportation orders issued by the Government Supplies Department to contractors for the handling and transportation of Government stores revealed a number of cases where the transportation charges had been incorrectly calculated. The terms of the contracts stipulated that the appropriate rate should be paid on dead weight or measurement whichever was the greater according to bills of lading or other documentary evidence obtained by the Director of Government Supplies. However cases were noted where the volume quoted in the transportation order was either disproportionate to the dead weight of the goods transported or substantially greater than the total volume of the items transported as shown in the supporting documents. Based on a sample check of transportation orders issued during the period April 1983 to March 1985, I estimated that overpayments to the contractors of $118,000 had been made, involving 71 transportation orders.

56.

I have invited the attention of the Director of Government Supplies to the discrepancies found in the transportation orders, pointing out that the system of internal checks over the payment of transportation charges was not entirely satisfactory. I have suggested that the control procedures should be critically reviewed and that written instructions should be issued highlighting the need for control over the handling and transportation of Government stores in order to prevent a recurrence of similar cases.