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Oscar Liu

Hong Kong’s Audit Commission has vowed to step up its scrutiny of expenses incurred by government-backed institutions and social welfare groups to stop staff from “seeking personal gain”, after finding an executive overspent on business travel.
Nelson Lam Chi-yuen, director of the commission, on Sunday addressed its latest report which revealed the then CEO of a nanotechnology institute had exceeded his allocated budget on 11 of 30 business trips.
The executive, Daniel Yu Wang-tak, granted his own approvals for the expenses during his time at the government-backed Nano and Advanced Materials Institute (NAMI).
Lam said he was worried over the latest findings.
“Similar situations have arisen in our previous audits, which can sometimes be perplexing to us. It’s surprising to see individuals repeating the same mistakes,” Lam said in a televised interview.
The audit director said society was concerned about the integrity of certain public servants, adding their conduct could affect the government’s expenditure and reputation.
“I want to emphasise one thing: I hope all public servants work to serve the public rather than seeking personal gain,” Lam said.
The institute, founded in 2006 to assist small and medium-sized enterprises in conducting research and development in nanotechnology and advanced materials, operates under the Innovation and Technology Commission.
Yu served as the institute’s CEO from September 2013 until his retirement in August this year.
Aside from Yu’s travel, the audit also examined 20 business trips by NAMI personnel between 2019 and 2024, involving airfares totalling HK$2 million (US$257,000). It found the same staff member extended stays for personal reasons in nine cases. Excess travel costs were recorded in three trips.
Lam said the auditor would adjust its strategies to create a more effective deterrent, especially to examine expenses incurred by public institutes and government-funded organisations.

The Audit Commission would also explore expanding its oversight to more institutions in the future, including funds or social welfare organisations, he said.
“If we have not come and audited you, one day we will have a chance to do so. That’s what we call a comprehensive coverage where we hope to create a resounding deterrent effect,” he said.
Lam added the auditor followed up on improvement efforts of organisations after a report was released, reviewing performance every six months or annually.
He said the auditor reported a Legislative Council committee over cases in which no improvements were seen. A follow-up audit could be necessary in extreme cases.
The 2020 Audit Report highlighted governance issues within the Sports Federation and the Olympic Committee, which prompted the former to establish a code of governance for affiliated associations last month.
Lam said “making improvements is better than making none”, especially given the extensive scope and involvement of associations and individuals within the Sport Federation.
He also addressed the increasing number of government services that had expanded to be implemented in mainland China in recent years, such as a pilot scheme for elderly healthcare vouchers in the Greater Bay Area.
The Audit Commission director said he had been in contact with the National Audit Office since starting his role in 2022 to ensure the two bodies understood their respective practices.
He said he was confident about collaboration opportunities in the future.


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Hong Kong auditor vows to step up scrutiny over expenses at government-backed bodies

A former CEO of the Nano and Advanced Materials Institute is facing scrutiny for exceeding travel budgets. Photo: Handout

Audit Commission head Nelson Lam says it is “surprising to see individuals repeating the same mistakes”. Photo: Handout

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The commission has also called on the institution to strengthen its “guidance and regulations” for facilities operated by external contractors. Photo: K. Y. Cheng

The commission has urged the university president to provide guidance to those overseeing campus facilities. Photo: Jelly Tse

Chinese University vice-chancellor and president Rocky Tuan attending a ceremony in 2018. His reappointment last year drew criticism from the pro-establishment camp. Photo: David Wong

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Hong Kong

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Findings over executive repeatedly exceeding budgets on business trips prompt Audit Commission to issue warning


Findings over executive repeatedly exceeding budgets on business trips prompt Audit Commission to issue warning.


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