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LC: Speech by CS introducing the Government Minute
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    Following is the speech (translation) by the Chief Secretary for Administration, Mr Rafael Hui, introducing the Government Minute in response to Report No. 46 of the Public Accounts Committee in the Legislative Council today (October 18):

Madam President,

     Laid on the table today is the Government Minute responding to Report No. 46 of the Public Accounts Committee (PAC).  

     The PAC Report No. 46 covers four chapters in the Audit Report No. 46, including two on the Radio Television Hong Kong (RTHK) which the PAC has conducted hearings.  When presenting PAC Report No. 46 on July 12 this year, the Chairman of the PAC set out in detail the comments of the PAC on RTHK's various irregularities identified in the audit.  The Administration is grateful for the time and effort that the PAC has devoted to this report.  Today, I would like to highlight the measures that have been or are being taken to improve RTHK's financial control and governance.  The measures that the Government has taken or is taking on the conclusions and recommendations contained in the PAC Report are set out in the Minute in detail.
 
     RTHK pledges to provide high quality public broadcasting services to the community, and at the same time exercises prudence in the use of public funds.  The Director of Broadcasting, together with his management team, is committed to implementing the recommendations made by the PAC and Audit Commission, to complying with government rules and regulations, and to enhancing financial control and governance in RTHK.  

     RTHK has formulated an action plan to address all recommendations of the PAC and Director of Audit.  New guidelines and reminders are being issued to ensure that staff are aware of all the specific requirements in the various areas of concern.  RTHK is working with relevant bureaux and departments to explore the possibility of providing for flexibility in its guidelines and internal regulations, where appropriate, to suit its operational requirements.

     The strengthened Systems Review Unit, headed by a Chief Treasury Accountant seconded to RTHK, has been closely monitoring and reviewing the effectiveness of internal control measures.  The Unit is advising and assisting the management team in putting in place proper checks and balances to ensure accountable, effective and efficient management of public resources.

     RTHK will compile annual plans to enhance resource management.  Under the Framework Agreement signed between the Secretary for Commerce, Industry and Technology (SCIT) and the Director of Broadcasting, the SCIT will provide policy guidance to the Director in defining programmes of activities, reviewing their objectives and setting performance targets, etc.  The Commerce, Industry and Technology Bureau will therefore follow up on the Audit Commission's observations and recommendations, and ensure that it plays an active part in providing policy guidance to RTHK to help it formulate annual plans, and monitor regularly implementation of the plans against targets set.

     Since 2000, the PAC, the Administration and the Director of Audit have agreed amongst themselves a set of arrangements to prevent leakage of audit investigations before tabling.  I would like to reiterate the Administration's commitment to these agreed arrangements to facilitate the smooth operations of the PAC.  We have reminded Directors of Bureaux and Controlling Officers that they should not speak or confirm the audit investigations before tabling of the Director of Audit's report.  They should also refrain from initiating publicity to counter the audit findings before public hearings.  The Administration would actively cooperate with the PAC and provide support to its work.

     Finally, I wish to echo the PAC Chairman's remarks that the PAC plays an important role in ensuring value for money in the delivery of public services.  The Administration looks forward to receiving its constructive comments and wise counsel.  As always, we shall respond positively and promptly.  Thank you.

Ends/Wednesday, October 18, 2006
Issued at HKT 11:29

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