SUPPLEMENTAL REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON REPORT NO. 60 OF THE DIRECTOR OF AUDIT ON THE RESULTS OF VALUE FOR MONEY AUDITS November 2013 P.A.C. Report No. 60A CONTENTS Paragraph Page Part 1 Introduction The Establishment of the Committee 1 1 Membership of the Committee 2 1 Part 2 Procedure The Committee's Procedure 1 2 - 3 Confidentiality undertaking by members of the 2 - 3 3 Committee The Committee's Report 4 3 The Government's Response 5 3 Part 3 Committee Proceedings Meetings 1 4 Arrangement of the Report 2 - 3 4 Acknowledgements 4 4 Part 4 Preventive education and enlisting public support against corruption A. Introduction 1 - 14 5 - 11 B. Summoning Mr Timothy TONG 15 - 17 12 Hin-ming, former Commissioner, Independent Commission Against Commission ("ICAC"), to attend before the Committee to give evidence C. Work of the Community Relations 18 - 37 12 - 20 Department - i - CONTENTS Paragraph Page D. Expenditures of the ICAC 38 - 139 20 - 60 E. Expenditure control on official 140 - 162 60 - 68 entertainment F. Legal basis for the ICAC to assist 163 - 168 68 - 72 other States Parties to the United Nations Convention Against Corruption ("UNCAC") in developing and implementing specific measures for the prevention of corruption in accordance with the provisions of paragraph 3 of Article 6 of the UNCAC G. Conclusions and recommendations 169 - 215 72 - 89 SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN 90 AND MEMBERS OF THE COMMITTEE CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT 91 NO. 60 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT Appendix relating to Part 1: "Introduction" Appendix 1 Rules of Procedure of the Legislative 92 - 93 Council of the Hong Kong Special Administrative Region ("HKSAR") Appendix relating to Part 2: "Procedure" Appendix 2 Paper presented to the Provisional 94 - 96 Legislative Council by the Chairman of the Public Accounts Committee at the meeting on 11 February 1998 on Scope of Government Audit in the HKSAR - 'Value for Money Audits' - ii - CONTENTS Page Appendices relating to Part 3: "Committee Proceedings" Appendix 3 Witnesses who appeared before the 97 Committee Appendix 4 Introductory remarks by the Deputy 98 - 99 Chairman of the Public Accounts Committee, Hon Paul TSE Wai-chun, JP, at the first public hearing of the Committee in respect of the Director of Audit's Report No. 60 on Saturday, 27 April 2013 Appendices relating to Part 4: "Preventive education and enlisting public support against corruption" Appendix 5 The ICAC's Commission Standing Orders 100 - 102 ("CSO") on "Entertainment Expenses" Appendix 6 Press release issued by the Department of 103 - 104 Justice on 14 May 2013 Appendix 7 Letter of 16 May 2013 from the 105 - 106 Commissioner, ICAC Appendix 8 Letter of 28 October 2013 from the 107 Commissioner, ICAC Appendix 9 Letter of 15 November 2013 from Clerk, 108 Public Accounts Committee to the Commissioner, ICAC Appendix 10 Opening statement made by the 109 - 113 Commissioner, ICAC at the public hearing on 18 May 2013 Appendix 11 Speaking note of the Director of Audit at 114 - 115 the public hearing on 18 May 2013 - iii - CONTENTS Page Appendix 12 Letter of 24 May 2013 from the Director 116 - 117 of Public Prosecutions Appendix 13 Organization chart of the Community 118 Relations Department ("CRD") of the ICAC Appendix 14 Speaking note of the Director of the 119 - 123 Community Relations at the public hearing on 4 June 2013 Appendix 15 Papers presented to the ICAC's Citizens 124 - 215 Advisory Committee on Community Relations ("CACCR") for endorsing the changing work strategy of the CRD from 2003-2004 to 2012-2013 Appendix 16 Extract of the minutes of the meeting of 216 - 218 the CACCR on the deliberations of the CACCR Paper 11/2009 "Mainland Liaison Work of the ICAC - Review and the Way Forward" Appendix 17 Established posts and staff strength of 219 the CRD from 2003-2004 to 2012-2013 Appendix 18 Justifications for the ICAC to operate 220 - 223 seven Regional Offices Appendix 19 Annual operating cost of each of the 224 - 230 seven Regional Offices of the ICAC from 2007-2008 to 2011-2012 Appendix 20 Annual funding and expenditure of the 231 ICAC from 2003-2004 to 2012-2013 Appendix 21 Annual funding and expenditure of the 232 - 235 CRD from 2003-2004 to 2012-2013 - iv - CONTENTS Page Appendix 22 Numbers of Owner's Corporations, 236 - 237 organizations and people reached by the CRD from 2003 to 2007 through talks, visits/meetings and seminars/workshops Appendix 23 Numbers of organizations and people 238 reached by the CRD's multi-faceted activities from 2003 to 2007 Appendix 24 Numbers of people reached by the 239 CRD's meet-the-public sessions from 2003 to 2007 Appendix 25 Numbers of the CRD's community 240 - 241 activities with sponsorship from 2003 to 2007 Appendix 26 Breakdown of the General Departmental 242 - 244 Expenses of the ICAC from 2003-2004 to 2012-2013 Appendix 27 Official entertainment expenses of the 245 - 270 CRD charged to the CRD's entertainment vote from 2003-2004 to 2012-2013 Appendix 28 Official entertainment expenses of the 271 - 284 CRD charged to the CRD's publicity vote from 2003-2004 to 2012-2013 Appendix 29 Amounts of expenditure under the 285 ICAC's official entertainment (common services) vote from 2006-2007 to 2012-2013 Appendix 30 Official entertainment expenditure 286 - 289 relating to the activities of the CRD charged to the official entertainment (common services) vote from 2006-2007 to 2012-2013 - v - CONTENTS Page Appendix 31 Details of the stock of wine and hard 290 liquor kept by the CRD from 2003-2004 to 2012-2013 Appendix 32 Details of the stock of wine and hard 291 liquor kept by the Administration Branch of the ICAC ("ADM") from 2007-2008 to 2012-2013 Appendix 33 Breakdown of the stock of the hard 292 liquor by types kept by the CRD from 2003-2004 to 2012-2013 Appendix 34 Breakdown of the stock of the hard 293 liquor by types kept by the ADM from 2007-2008 to 2012-2013 Appendix 35 The amounts spent on wine and hard 294 liquor procured by the CRD and the ADM respectively during the tenure of the former Commissioner, ICAC, Mr Timothy TONG Hin-ming Appendix 36 Opening statement made by the 295 - 300 Commissioner, ICAC at the meeting of the LegCo Panel on Security on 27 May 2013 Appendix 37 Expenditures on duty visits outside 301 Hong Kong from 2006-2007 to 2012-2013 Appendix 38 Details of a duty visit to Shenzhen 302 headed by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, on 19 August 2011 Appendix 39 Breakdown of the total annual 303 expenditure of the ICAC by department from 2003-2004 to 2012-2013 - vi - CONTENTS Page Appendix 40 Justifications for the setting up of the 304 Office of Strategic Research Appendix 41 Breakdown of the annual expenditure of 305 - 306 the ADM from 2003-2004 to 2012-2013 Appendix 42 Annual budget and expenditure of the 307 Centre of Anti-Corruption Studies ("CACS") from 2009-2010 to 2012-2013 Appendix 43 Reasons for the transfer of the CACS 308 from the ADM to the Corruption Prevention Department ("CPD") and subsequently back to the ADM in September 2012 Appendix 44 Extracts of the minutes of meetings on 309 - 310 the setting up of the CACS Appendix 45 Headcount of the CACS from 2008-2009 311 to 2012-2013 Appendix 46 Information on the hiring of Professor 312 - 313 YUAN Bo-shun as Senior Consultant of the CACS Appendix 47 Types of work carried out/completed by 314 Professor YUAN Bo-shun during his tenure at the CACS Appendix 48 Activity summary of the CACS from 315 - 317 2008-2009 to 2012-2013 Appendix 49 The votes to which the procurement of 318 wine and hard liquor by the CRD and the ADM were charged during the tenure of the former Commissioner, ICAC, Mr Timothy TONG Hin-ming - vii - CONTENTS Page Appendix 50 Information on the official lunches and 319 - 320 dinners hosted by the ICAC for the Liaison Office of the Central People’s Government ("CPG") in the HKSAR and Consul General's respectively from 2003-2004 to 2012-2013 Appendix 51 Details of the 35 duty visits outside Hong 321 - 336 Kong headed by the former Commissioner, ICAC, Mr Timothy TONG Hin-ming, from 2007-2008 up to 30 June 2012 Appendix 52 35 applications made by the former 337 - 371 Commissioner, ICAC, Mr Timothy TONG Hin-ming, for attending duty visits outside Hong Kong Appendix 53 Itinerary of the duty visit to 372 - 373 Beijing-Yunnan-Lijiang (11 to 17 January 2009) Appendix 54 Information on the Hong Kong Mainland 374 Liaison Office of the ICAC Appendix 55 Chronological account of organizing the 375 duty visit to Beijing-Yunnan-Lijiang (11 to 17 January 2009) Appendix 56 Procurement of air passages and 376 arrangement of accommodation for the Lijiang leg of the duty visit to Beijing-Yunnan-Lijiang (11 to 17 January 2009) Appendix 57 A sample application made by a former 377 - 379 Commissioner, ICAC to the CE for attending a duty visit outside Hong Kong - viii - CONTENTS Page Appendix 58 Itinerary of the duty visit to 380 - 381 Beijing-Chengdu-Leshan (16 to 23 May 2010) Appendix 59 Application made by the former 382 Commissioner, ICAC, Mr Timothy TONG Hin-ming, to the CE for attending a duty visit to Hangzhou (14 to 17 November 2008) Appendix 60 Itinerary of the duty visit to Hangzhou 383 (14 to 17 November 2008) Appendix 61 Itinerary of the duty visit to Beijing and 384 - 385 Guangxi Zhuang Autonomous Region (25 to 29 May 2008) Appendix 62 Itinerary of the duty visit to Salvador, 386 - 387 Brazil and London, United Kingdom (8 to 14 April 2010) Appendix 63 Expenditure of the thematic seminar 388 ICAC co-organized with the