Gov’t terminates all contracts linked to water fraud

Authorities said XDX and related firms can no longer meet their contracts.

The government has terminated all contracts linked to the owners of Xin Ding Xin Trade Co. (XDX) with immediate effect.

The move follows information gathered by the Government Logistics Department (GLD) about the firm’s operations and recent enforcement actions against it by government departments.

Authorities said they believe XDX and related firms can no longer meet their contractual obligations.

The GLD ended its contract with XDX to supply bottled water to government offices, along with three other contracts with associated companies for chemical supplies.

After that, the Financial Services and the Treasury Bureau instructed all bureaus and departments to terminate their contracts with the companies as well.

Amongst the cancelled deals are a Drainage Services Department (DSD) contract worth about $6m for chemical supplies and a Fire Services Department (FSD) contract worth about $5m for data entry services.

The government holds around $1m from XDX as a deposit under the bottled drinking water contract and may use the funds to cover any losses from the termination.

It has also reserved the right to pursue further action against the company.

Meanwhile, the GLD will continue to cooperate fully with the investigations of law enforcement agencies.

The GLD, DSD and FSD will continue to review how to recover the government’s losses under contract terms.

Any illegal activities identified in the contracts will be referred to law enforcement agencies for follow-up.