Minutes of the 4th Meeting of Eastern District Council€¦ · Mr YEUNG Sze -chun 2:30 end of meeting Dr CHIU Ka-yin, Andrew 2:30 end of meeting Mr CHIU Chi-keung, BBS 2:30 end of

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Minutes of the 4th Meeting of the Vetting Committee

Eastern District Council

Date: 17 July 2018 (Tuesday) Time: 2:30 pm Venue: Eastern District Council (EDC) Conference Room

Present Time of Arrival (pm)

Time of Departure (pm)

Mr TING Kong-ho, Eddie 2:40 end of meeting Mr WONG Chi-chung, Dominic (Vice-chairman)

2:30 end of meeting

Mr KU Kwai-yiu 2:30 end of meeting Mr HO Ngai-kam, Stanley 2:30 end of meeting Mr LAM Sum-lim 2:30 end of meeting Mr HUNG Lin-cham, MH 2:30 end of meeting Mr CHUI Chi-kin 3:05 end of meeting Mr CHEUNG Kwok-cheong, Howard

3:18 end of meeting

Mr LEUNG Siu-sun, Patrick 2:35 end of meeting Mr LEUNG Kwok-hung, David 2:30 end of meeting Mr HUI Lam-hing 2:30 end of meeting Ms CHIK Kit-ling Elaine 2:30 end of meeting Mr WONG Kin-pan, BBS, MH, JP 2:40 end of meeting Mr YEUNG Sze-chun 2:30 end of meeting Dr CHIU Ka-yin, Andrew 2:30 end of meeting Mr CHIU Chi-keung, BBS 2:30 end of meeting Mr CHENG Chi-sing 2:30 end of meeting Mr LAI Chi-keong, Joseph 3:00 end of meeting Mr NGAN Chun-lim, MH 2:40 end of meeting Mr LO Wing-kwan, Frankie, MH (Chairman)

2:30 end of meeting

Mr KUNG Pak-cheung, BBS, MH 4:00 end of meeting Mr CHAN Lai-yin (Co-opted Member)

2:30 end of meeting

Absent with Apologies

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Ms LEUNG Wing-man, Bonnie Mr MAK Tak-ching Mr FAN Hai-tai (Co-opted Member)

In Regular Attendance (Government Representatives) Miss NGAI Lai-ying, Angora

Assistant District Officer (Eastern) 1, Eastern District Office

Mr CHAN Yiu-ming, Frederick

Senior Liaison Officer (1), Eastern District Office

Miss WAH Pui-yee, Vivian Senior Executive Officer (District Council), Eastern District Office

Miss HAU Tsun-tsun, Kenix (Secretary)

Executive Officer I (District Council) 1, Eastern District Office

In Attendance by Invitation (Representatives from the Government and Organisations) Mr LAW Chung-chak, Joe

Assistant Manager (Hong Kong East) Marketing, Programme and District Activities, Leisure and Cultural Services Department

Opening Remarks The Chairman welcomed all Members and representatives of government departments to the meeting. Members were also asked to declare their interests pursuant to Section 48 of the Standing Orders of the EDC (the Standing Orders) where appropriate and necessary. He asked Members to declare their interests before discussing related agenda items and submit the declaration form to the Secretariat for record purpose and for ruling of the interest(s) declared. I. Confirmation of the Draft Minutes of the 3rd Meeting of VC 2. The Vetting Committee (VC) confirmed the above draft minutes without amendment.

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II. Discussion on How to Handle Cases Which Do Not Meet the Criteria for Reimbursement of Expenses

(VC Paper No. 27/18) 3. The Chairman invited Members to declare their interests. 4. The Chairman said that he had declared himself as the Honorary President of Lan Fong Women Association. Pursuant to Section 48 (12) of the Standing Orders, the Vice-chairman would rule on the declaration. The Vice-chairman said that as the Chairman held a nominal position in the applicant organisation, the Chairman could take part in the discussion and decision-making of the cases concerned and could continue to chair the meeting. 5. The interests declared by Members are summarised as follows:

Name of Member

Application No. Interests in the Relevant Organisations

Mr Frankie LO

180099 Honorary President, Lan Fong Women Association

Mr WONG Kin-pan

180099 Honorary President, Lan Fong Women Association

Mr CHENG Chi-sing

180099 Honorary Advisor, Lan Fong Women Association

Mr HUNG Lin-cham

180099 Honorary Advisor, Lan Fong Women Association

6. The Chairman said that the positions held by Members in the applicant organisation were nominal ones, therefore Members could participate in the discussion and decision-making of the cases concerned. 7. The Secretary introduced Paper No. 27/18. (i) A Case Where the VC Was Not Notified of the Changes to the Activity Name,

Co-organiser of the Activity Was Added without Application to the VC, and the Font Size of “Sponsored by the EDC” on Publicity Materials of the Activity did not meet the Guidelines

“National Day Tea Party” of Lan Fong Women Association (Application No.:

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180099(170181)) 8. Mr KU Kwai-yiu said that it would be appropriate to issue a reminder letter if the organisation had not violated the reimbursement criteria in the past. 9. The Chairman responded that the Paper showed that this was the first time the organisation violated the provisions of the “Guidelines on the Eastern District Community Involvement Project Subsidy Scheme” (the Guidelines). 10. After discussion, the VC acknowledged that the expenses on the promotional materials used in the activity which had violated the provisions of the Guidelines were not subsidised, and resolved to reimburse the expenses for the activity in the amount of $13,000, but a reminder would be issued to the organisation. III. Report on Cases Not Meeting the Reimbursement Criteria for the First Time

and Approved by Chairman/Vice Chairman with Committee’s Authorisation (VC Paper No. 28/18) 11. The Chairman invited Members to declare their interests. 12. The Chairman indicated that no other Members declared interests regarding this paper. 13. The Secretary introduced Paper No. 28/18. 14. After discussion, the VC noted the report. IV. Report on the 2nd Meeting of Vetting Working Group (VC Paper No. 29/18) V. Vetting of Funding Applications Regarding “Arts and Cultural” Projects

under the “Eastern District Community Involvement Project Subsidy Scheme” (VC Paper No. 30/18) 15. The Chairman welcomed Mr Joe LAW, Assistant Manager (Hong Kong East) Marketing, Programme and District Activities of the Leisure and Cultural Services

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Department (LCSD) to the meeting. 16. The Chairman invited Members to declare their interests. 17. The Chairman indicated that no other Members declared interests regarding this paper. 18. Mr Dominic WONG, Chairman of the Working Group, introduced Paper No. 29/18 and No. 30/18. He supplemented that with regards to Application No.180174, the Working Group agreed that the application would be vetted by the VC after the organisation had supplemented the application documents, and the organisation concerned had already revised the date of the activity. 19. Mr Joe LAW of the LCSD supplemented that the applicant organisation of Application No.180174 often held activities at Sai Wan Ho Civic Centre and had a good track record. The items and fees under the application met the standards of Sai Wan Ho Civic Centre, but the results of the application for venue booking would not be announced until late July. 20. After discussion, the VC noted the report on the 2nd meeting of the Working Group and endorsed five funding applications regarding “Arts and Cultural” Projects with total funding of $65,766.11. VI. Vetting of Funding Applications Regarding Special Fund for “Arts and

Cultural Activities” (VC Paper No. 31/18) 21. The Chairman welcomed Mr Joe LAW, Assistant Manager (Hong Kong East) Marketing, Programme and District Activities of the LCSD to the meeting. 22. The Chairman invited Members to declare their interests. 23. The Chairman indicated that no other Members declared interests regarding this paper. 24. The Secretary introduced Paper No. 31/18. (i) “Youth New World Children and Youth Choir Music Training Programme

2018” of Youth New World Limited (Application No.: 180253)

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25. Mr KU Kwai-yiu asked if the applicant organisation had any connection with New World Development Company Limited. In addition, he asked whether the training programme was in line with the funding guidelines for the Special Fund for “Arts and Cultural Activities”. 26. The Chairman responded that the application concerned included training programme and performances. He believed that it was in line with the funding guidelines for the Special Fund for “Arts and Cultural Activities”. 27. The Secretary supplemented that according to the documentary proof of the charitable status of the organisation issued by the Inland Revenue Department (IRD), the organisation was an independent body and had no subordinate relationship with any other organisations. 28. After discussion, the VC endorsed two applications for special funding regarding “Arts and Cultural Activities” with a total funding of $142,939. VII. Vetting of Funding Applications Regarding Projects from “Mutual Aid

Committees, Owners Committees and Owners’ Corporations” under the “Eastern District Community Involvement Project Subsidy Scheme”

(VC Paper No. 32/18) 29. The Chairman invited Members to declare their interests. 30. The interests declared by Members are summarised as follows:

Name of Member


Mr CHIU Chi-keung

180244 Vice-chairman, Yiu Fook House Mutual Aid Committee *

Mr CHENG Chi-sing

180175 Chairman, Healthy Village Estate Hong Chi Court & Hong Tat Court Mutual Aid Committee *

* Members did not participate in the discussion, decision-making or voting of the related funding

applications and submitted the declarations after the end of this agenda item.

31. The Secretary introduced Paper No. 32/18.

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32. After discussion, the VC endorsed 34 funding applications from “mutual aid committees, owners committees and owners’ corporations” with a total funding of $233,900. VIII. Vetting of Funding Applications Regarding Projects from “Designated

Organisations and Activities” under the “Eastern District Community Involvement Project Subsidy Scheme”

(VC Paper No. 33/18) 33. The Chairman invited Members to declare their interests. 34. The Chairman said that he had declared himself as a member of Eastern District Art Council Limited. In addition, he said that he and the Vice-chairman had both declared themselves as Honorary Advisors of Eastern District Recreation and Sports Advancement Association Limited. He invited all Members present (other than the Chairman, Vice-chairman and other Members who had already made the interest declaration) to rule on the declarations of the Chairman and the Vice-chairman. The VC agreed that as the positions held by the Chairman and Vice-chairman in the applicant organisations were nominal ones, they could take part in the discussion and decision-making of the related funding applications and continue to chair the meeting. 35. The interests declared by Members are summarised as follows:

Name of Member


Mr Frankie LO

180210 – 216 Honorary Advisor, Eastern District Recreation and Sports Advancement Association Limited

180256 – 258 Member, Eastern District Art Council Limited Mr Dominic WONG


180172 Honorary Advisor, SKWNDB Organization Mr WONG Kin-pan

180210 – 216 Advisor, Eastern District Recreation and Sports Advancement Association Limited

180172 Honorary President, SKWNDB Organization Mr CHIU Chi-keung

180177 – 190, 180208 – 209

Member, Eastern District Fight Crime Committee

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Name of Member


Mr CHENG Chi-sing


Mr Howard CHEUNG

180177 – 190, 180208 – 209

Member and Working Group Member, Eastern District Fight Crime Committee

Ms Elaine CHIK

180268 – 274 Member, Eastern District Fire Safety Committee; Member, Fire Safety Publicity Working Group under Eastern District Fire Safety Committee

Mr Andrew CHIU

180177 – 190, 180208 – 209


Mr Stanley HO

180268 – 274 Member, Eastern District Fire Safety Committee

Mr HUI Lam-hing

180172 Honorary Advisor, SKWNDB Organization

Mr HUNG Lin-cham

180177 – 190, 180208 – 209



Mr KU Kwai-yiu


Mr KUNG Pak-cheung


Mr Joseph LAI


Mr LAM Sum-lim

180172 Honorary Advisor, SKWNDB Organization 180210 – 216 Honorary Advisor, Eastern District Recreation

and Sports Advancement Association Limited 180219 – 220 Honorary Advisor, Ming Wah Yin Ngai

Society 180268 – 274 Member, Eastern District Fire Safety

Committee; Member, Fire Safety Publicity Working Group under Eastern District Fire Safety Committee

Mr Eddie TING


180259 Eastern District Council Representative, Eastern District School Liaison Committee

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36. The Chairman ruled that the positions held by Members in the applicant organisations were nominal ones, they could participate in the discussion and decision-making of the related funding applications. 37. The Secretary introduced Paper No. 33/18. (i) Applications Submitted in Advance 38. The VC endorsed eight applications that were submitted in advance (Application No.: 180185, 180187 – 180190, 180256 – 180257 and 180270). (ii) Late Submissions of Applications 39. The VC endorsed 15 applications that were submitted in advance (Application No.: 180177 – 180190 and 180269). (iii) Applications in respect of Activities Held outside Eastern District 40. The VC endorsed seven applications for activities held outside Eastern District (Application No.: 180186 – 180188, 180190, 180214, 180220 and 180269). (iv) “The 21st Optimistic View of Life – Anti-drug Visit” (Application No.: 180187)

and “The 21st Optimistic View of Life - Anti-drugs Sharing” (Application No.: 180188) of the Eastern District Fight Crime Committee

41. Mr KU Kwai-yiu said that the co-organiser of both activities was the same organisation in Chai Wan and enquired about the difference between the two activities. He hoped that the applicant organisation would consider co-organising activities with different organisations in future applications. 42. The Secretary responded that the venue and departure point of the activity under Application No.180187 were Yuen Long and North Point respectively, whereas the venue and departure point of the activity under Application No.180188 were Sai Kung and Chai Wan respectively. The target of both activities was students of Eastern District, but they were not the same group of students. 43. The Chairman concluded that the applicant organisation should consider co-organising activities with different organisations in future applications.

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44. After discussion, the VC endorsed 37 funding applications in respect of “designated organisations and activities” with a total funding of $2,033,619.78. (Post-meeting note: The Secretariat had conveyed the views of Members on “The

21st Optimistic View of Life – Anti-drug Visit” (Application No.: 180187) and “The 21st Optimistic View of Life - Anti-drugs Sharing” (Application No.: 180188) to the Eastern District Fight Crime Committee.)

IX. Vetting of Funding Applications Regarding Projects from “Other Non-

government Organisations” under the “Eastern District Communitu Involvement Project Subsidy Scheme”

(VC Paper No. 34/18) 45. The Chairman invited Members to declare their interests. 46. The Chairman said that he had declared himself as Advisor of Federation of

Jinjing Towns Association (H.K.) Limited, Honorary President of Dance Culture (Eastern) Ladies Club and Honorary Advisor of Chai Wan Women’s Association. In addition, he said that he and the Vice-chairman had declared themselves as Advisor and Deputy Director of Shaukiwan & Chaiwan Residents Fraternal Association respectively and had both declared themselves as Honorary Advisors of The Coordination and Promotion of Eastern District Limited. Therefore he invited all Members present (other than the Chairman, Vice-chairman and other Members who had already made the interest declaration) to rule on the declarations of the Chairman and Vice-chairman. The VC agreed that as the positions held by the Chairman and Vice-chairman in the applicant organisations were nominal ones, they could take part in the discussion and decision-making of relevant funding applications and could continue to chair the meeting. However, as the Vice-chairman held a substantive position in Shaukiwan & Chaiwan Residents Fraternal Association, he should remain silent during the discussion on the related funding application and could not participate in the decision-making or voting of the related funding application.

47. The interests declared by Members are summarised as follows:

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Name of Member


Mr Frankie LO

180249 – 250 Honorary President, Dance Culture (Eastern) Ladies Club

180262 Honorary Advisor, Chai Wan Women’s Association

180227 Advisor, Shaukiwan & Chaiwan Residents Fraternal Association

180260 Honorary Advisor, The Coordination and Promotion of Eastern District Limited

180151 Advisor, Federation of Jinjing Towns Association (H.K.) Limited

Mr Dominic WONG

180227 Deputy Director, Shaukiwan & Chaiwan Residents Fraternal Association *

180243 Advisor, Chai Wan Fishermen’s Recreation Club

180245 Vice-chairman, Yiu Tung & Hing Tung Residents’ Association *


Mr WONG Kin-pan

180262 Honorary President, Chai Wan Women’s Association

180227 Honorary President, Shaukiwan & Chaiwan Residents Fraternal Association

180243 Honorary President, Chai Wan Fishermen’s Recreation Club

180260 Honorary President, The Coordination and Promotion of Eastern District Limited

Mr CHENG Chi-sing

180227 Advisor, Shaukiwan & Chaiwan Residents Fraternal Association

180239 Honorary President, Hong Kong Sing Fat Workers & Merchants Association Limited

180240 – 241 Honorary President, Trueway Chai Wan Residents’ Association

180260 Community Advisor, Youth Vanguard Association Limited Vice-chairman, The Coordination and

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Name of Member


Promotion of Eastern District Limited * 180176 Honorary President, Healthy Village

Residents’ Association Ms Elaine CHIK

180221 Secretary, Siu Sai Wan Residents’ Association *

Mr HUI Lam-hing


180235 Founding President, Hing Tung Community Network

Mr HUNG Lin-cham


180260 Community Advisor, Youth Vanguard Association Limited Vice-chairman, The Coordination and Promotion of Eastern District Limited *

Mr LAM Sum-lim


Mr David LEUNG


180221 Honorary Advisor, Siu Sai Wan Residents’ Association

180247 Honorary President, Mei Wen Paradise Mr NGAN Chun-lim


Mr Eddie TING


Mr YEUNG Sze-chun


*Members holding substantive positions in the organisations remained silent during the discussion of the related funding applications and did not participate in the decision-making or voting of the related funding applications. Note: Except for those marked with *, all other declarations involved the holding of nominal positions.

48. The Chairman said that Mr LAM Sum-lim and Mr NGAN Chun-lim had both declared themselves as Deputy Directors of Shaukiwan & Chaiwan Residents Fraternal Association; Mr CHENG Chi-sing and Mr HUNG Lin-cham declared themselves as Vice-chairmen of The Coordination and Promotion of Eastern District

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Limited; Mr Dominic WONG had declared himself as Vice-chairman of Yiu Tung & Hing Tung Residents’ Association; and Ms Elaine CHIK had declared herself as the secretary of Siu Sai Wan Residents’ Association. As the positions they held in the applicant organisations were substantive ones, they should remain silent during the discussion of the related funding applications and could not participate in the decision-making or voting of the related funding applications. Other Members who declared nominal positions in the applicant organisations could participate in the discussion and decision-making for the related funding applications. 49. The Secretary introduced Paper No. 34/18. (i) Applications in respect of Activities Held outside Eastern District 50. The VC endorsed six applications for activities held outside Eastern District (Application No.: 180151, 180155, 180166, 180229, 180233 and 180234). (ii) “Cantonese Opera Gathering for the Elderly” of “Harmonic Unity”

(Application No.: 180230) “Healthy Song and Dance for the Elderly” of “Rainbow Star” (Application No.: 180232)

“Joyful Gourmet Tour” of “Rainbow Star” (Application No.: 180233) “Fun Gourmet Tour for the Elderly” of Eastern District Residents’ Association

(Application No.: 180234) 51. Mr KU Kwai-yiu said that the registered addresses of the aforementioned organisations as given on their application forms had ceased to be valid, and asked if the applicant organisations had updated their registered addresses. 52. After discussion, the VC endorsed the arrangement of staff of the Eastern District Office to make visits to confirm the registered addresses of the aforementioned applicant organisations, and authorised the Chairman to approve the aforementioned funding applications after the registered addresses of the organisations were confirmed. 53. The VC endorsed 33 other funding applications from “other non-government organisations” with a total with a total funding of $496,813. (Post-meeting note: (i) According to paragraphs 2.2.2 and 2.2.3 of the Guidelines,

“The address of organisation applying for funding under the Community Involvement Programme must be in Eastern District” and “Organisation applying for funding should

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provide valid supporting documents, such as the Certificate of Registration of the organisation, Constitution or any other tax exemption documents issued by the IRD, when applying for funding from the EDC to prove that it met the requirements of paragraphs 2.2.1 and 2.2.2”. After considering the above, the Chairman believed that Harmonic Unity, Rainbow Star and Eastern District Residents’ Association had not notified the VC of the changes to their registered addresses before the VC meeting on 17 July 2018. At the same time, the organisations were unable to provide sufficient proof of their registered addresses in Eastern District; therefore the VC decided not to endorse the funding applications from the organisations (Application No.: 180230, 180232-234). In addition, after the meeting, the Secretariat confirmed that the address of Fei Tsui District Residents’ Association (Application No.: 180231) should also be verified, which meant that five applications involving four organisations required verification of address. As the VC did not authorise the Chairman to further handle the funding application from Fei Tsui District Residents’ Association on the meeting, on 9 August 2018, the VC considered and rejected the funding application for “Celebrating the National Day through Music and Dance” (Application No.: 180231) organised by Fei Tsui District Residents’ Association by way of circulation of papers based on the Chairman’s rationale in vetting the four abovementioned funding applications.

(ii) Therefore, 32 funding applications from “other non-

government organisations” were endorsed with a total funding of $490,313.)

X. Application for Revision of the Details of the Activity – Youth Infinity (VC Paper No. 35/18) 54. The Chairman invited Members to declare their interests. 55. The Chairman indicated that no other Members declared interests regarding this paper.

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56. The Secretary introduced Paper No. 35/18. 57. After discussion, the VC endorsed the application for the revision of the details of the activity.

XI. Vetting of Reimbursement Claims Submitted by Eastern District Arts Council Limited

“Music for Our Young Christmas Concert” and “The 10th Youth Visual Art Exhibition 2018”

(VC Paper No. 36/18) 58. The Chairman invited Members to declare their interests. 59. The Chairman said that he had declared himself as a member of Eastern District Art Council Limited. Pursuant to Section 48 (12) of the Standing Orders, the Vice-chairman would rule on the declaration. The Vice-chairman said that as the position declared by the Chairman in Eastern District Art Council Limited was a nominal one, the Chairman could take part in the discussion and decision-making of the case concerned and could continue to chair the meeting. 60. The Chairman said that no other Members declared interests regarding this Paper. 61. The Secretary introduced Paper No. 36/18. (i) “Music for Our Young Christmas Concert” (Application No.: 180100 (170194)) 62. The Chairman said that the organisation had said in a letter that it had publicly invited quotations for the production of promotional materials, and had received quotations from a supplier and from a company in which the public relations official of Eastern District Art Council Limited was an executive director on 17 October 2017 and 18 October 2017 respectively. The contract fees were $15,600 and $13,400 respectively. 63. The views and enquiries of 5 Members about the item are summarised as follows:

(a) The Chairman believed that although the public relations official of Eastern District Art Council Limited had filled out and submitted the Interest Declaration Form (Form VI) for the aforementioned activity, as

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only two quotations were received at the end, unless the doubts about whether or not the public relations official knew the other submitted quotation could be dispelled, the decision of the previous meeting should be upheld and the activity expenditure for procurements from the contractor in which the public relations official of the organisation was an executive director should not be reimbursed.

(b) Mr KU Kwai-yiu said that the public relations official of the

organisation might have the authority to view the quotations made by other suppliers and the quotation from the company in which the public relations official of the organisation was an executive director was submitted later than the quotation of the first supplier. Moreover, since the contract fee was also lower, it would inevitably arouse suspicion of unfairness about the procurement. Therefore, he agreed not to reimburse the activity expenditure for procurements from the contractor in which the public relations official of the organisation was an executive director.

(c) Mr CHUI Chi-kin believed that the activity expenditure for

procurements from the contractor in which the public relations official of the organisation was an executive director should not be reimbursed.

(d) After considering the situation, Mr WONG Kin-pan agreed not to

reimburse the activity expenditure for procurements from the contractor in which the public relations official of the organisation was an executive director.

(e) Mr LAM Sum-lim agreed not to reimburse the activity expenditure for

procurements from the contractor in which the public relations official of the organisation was an executive director.

64. After discussion, the VC endorsed not to reimburse the activity expenditure for procurements from the contractor in which the public relations official of the organisation was an executive director, and agreed to issue a warning letter to the organisation. (ii) “The 10th Youth Visual Art Exhibition 2018” (Application No.: 180101

(170195)) 65. The Chairman said that the organisation had posted an announcement on its

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website on 11 December 2017 to publicly invite suppliers to provide quotations for the rental of venue facilities and co-ordination and production for the activity. As no quotation had been received within one week of posting the announcement, the organisation had placed an advertisement in a newspaper on 20 December 2017 to invite quotation from suppliers. As the organisation had only received one quotation, which was from the company in which the public relations official of the organisation was an executive director, and the said public relations official had completed and submitted the Interest Declaration Form (Form VI) for the activity, the quotation was ultimately accepted. 66. The views and enquiries of 11 Members about the item are summarised as follows:

(a) The Chairman said that the working groups under the EDC had a precedent of accepting the only quotation received. Therefore he believed that the VC could reconsider whether it would reimburse the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director.

(b) Mr CHUI Chi-kin said that as the organisation had placed an

advertisement in a newspaper on 20 December 2017 to invite quotations from contractors with the deadline on 27 December 2017, he believed that some suppliers might have refrained from submitting a quotation because there was only one week to make the submission. In addition, he asked about the date on which the Interest Declaration Form (Form VI) was completed by the public relations official of the organisation, and how similar cases would be handled in the future. He worried about public perception of the handling method of this case and the inconsistencies in handling this case and similar cases in the future. Therefore, he believed that the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director should not be reimbursed to show fairness.

(c) Mr Patrick LEUNG said that the organisation was a designated

organisation and believed it was necessary to address the procurement issue of this activity. He enquired whether the Guidelines required the applicant organisation to reject quotations from suppliers in which a member of the organisation was an executive member. He believed that although the public relations official had completed and submitted the Interest Declaration Form (Form VI) for the activity concerned, the

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quotation process of the activity was less than ideal. Moreover, since the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director was significant, it was inevitable that people would suspect that the contractor enjoyed extra leverage in the process.

(d) Mr WONG Kin-pan said that although there was room for improvement

in the procurement arrangement of the activity concerned, the organisation had made a public invitation for quotations. Taking into account that no other suppliers had made a quotation during the quotation submission period, the activity had been conducted according to the Guidelines and the organisation was a designated non-profit organisation, he suggested reimbursing the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director, but believed that a serious warning letter should be issued to the organisation.

(e) Mr KU Kwai-yiu said that as a designated organisation, the organisation

should have been even more cautious to avoid arousing suspicion, and should not have accepted a quotation made by the contractor in which the public relations official of the organisation was an executive director. He believed that the organisation should have invited suppliers to make a quotation again if no quotation had been received from suppliers, so as to avoid potential conflict of interest. He believed that upholding the decision made in the previous meeting of not reimbursing the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director would be in line with the principle of making proper use of public funds. At the same time, he believed that if the expenditure of the organisation was reimbursed, it would be unfair not to reimburse the expenditure of other organisations in a similar situation in the future.

(f) Mr LAM Sum-lim said that the organisation had publicly invited

quotations by publicly inviting suppliers to make a quotation online on 11 December 2017 and placing an advertisement in a newspaper on 20 December 2017 to invite quotations from suppliers. A supplier who intended to submit quotation should be able to submit the quotation within two to three days. In addition, with reference to the reporting arrangements for the vetting of activities, when a member (or the responsible person of the activity concerned) who held a substantive

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position in the applicant organisation withdrew from the meeting, the application could still be vetted by other members who did not need to declare their interests for the organisation concerned. He pointed out that the organisation had made a declaration according to the mechanism concerned, so he believed the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director should be reimbursed, but a warning letter should be issued to the organisation to request the organisation to pay attention to avoid arousing suspicion in the procurement process.

(g) Mr CHIU Chi-keung believed that although the arrangements made by

the organisation to invite quotations were less than ideal, they were still in line with the quotation mechanism. Therefore he suggested issuing a warning letter to the organisation.

(h) The Vice-chairman believed that a supplier who had the intention to

submit a quotation had sufficient time to submit the quotation documents, and that the organisation concerned ultimately accepted the only quotation received for the activity probably because no quotation had been submitted by other organisations and the organisation needed to organise the activity according to the approved activity plan. He said that the organisation had completed and submitted the Interest Declaration Form (Form VI) in accordance with the Guidelines. Therefore, he agreed with reimbursing the expenditure items concerned and issuing a warning letter to the organisation.

(i) Mr Howard CHEUNG said it was inevitable that public would consider

the procurement arrangements for the activity concerned inappropriate, therefore he believed that the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director should not be reimbursed.

(j) Mr Joseph LAI hoped that this case would be handled in a way that would

be convincing to the public. He believed that since the organisation concerned had applied for funding from the EDC for many years, it should have understood the EDC’s requirements regarding the operation and organisation of activities. Therefore the VC should issue a strong warning letter to the organisation.

(k) Ms Elaine CHIK believed that the case must be handled in accordance

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with the existing Guidelines. In the absence of any contravention of the Guidelines, the VC should give careful consideration to the justifications for not reimbursing the expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director. If Members thought that the existing Guidelines were not comprehensive enough, they could consider further fine-tuning of the relevant provisions when the Guidelines were revised in the future.

67. The Chairman responded that suppliers who were interested in submitting a quotation should have been able to do so within a few days. He said that it was possible that the organisation had already begun to organise the activity and invest resources when it solicited quotations, and thus ultimately accepted the quotation from the contractor in which the public relations official of the organisation was an executive director. However, he believed that a warning letter should be issued to the organisation concerned to warn the organisation to act more prudently when soliciting quotations for activities in the future, and that quotations submitted by members of the organisation should not be accepted at all. He believed that if any other applicant organisations encountered a similar situation in the future, they could request members or executive members not to submit any quotations or bids. In addition, he believed that the VC could consider revising the requirements on the procurement of items/services by applicant organisations in the Guidelines when the Guidelines were reviewed next year. 68. The Secretary supplemented that the Interest Declaration Form (Form VI) submitted by the public relations official of the organisation was signed on 27 December 2017. 69. After discussion, the VC agreed to vote on a named basis on the issue of whether or not to reimburse the expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director. After the vote, the VC endorsed the reimbursement of the activity expenditure of procurements from the contractor in which the public relations official of the organisation was an executive director with 15 votes in favour, 5 votes against and 0 abstentions. (15 Members who voted in favour:

WONG Kin-pan, CHIU Chi-keung, Frankie LO, Dominic WONG, Eddie TING, Stanley HO, LAM Sum-lim, David LEUNG, HUI Lam-hing, Elaine CHIK, YEUNG Sze-chun, CHENG Chi-sing, NGAN Chun-lim, KUNG Pak-cheung, CHAN Lai-yin

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5 Members who voted against:

KU Kwai-yiu, CHUI Chi-kin, Howard CHEUNG, Patrick LEUNG, Joseph LAI

No abstentions)

70. In addition, the VC also agreed to issue a warning letter for the two cases to warn the organisation concerned that it must reject the quotation or bidding participation of any person or company that had a potential conflict of interest when organising activities sponsored by the EDC, so as to avoid the recurrence of the same type of incident. XII. Date of Next Meeting 71. The meeting ended at 4:20 pm. The 5th Meeting of the VC would be held at 2:30 pm on 16 October 2018 (Tuesday). Eastern District Council Secretariat October 2018

Documents

Minutes of the 4th Meeting of Eastern District Council€¦ · Mr YEUNG Sze -chun 2:30 end of meeting Dr CHIU Ka-yin, Andrew 2:30 end of meeting Mr CHIU Chi-keung, BBS 2:30 end of