Hong Kong Government Spends HK$55 Million on Masks; Brand’s Xiamen Subsidiary Denies Defective Products Entered Hong Kong

Earlier this month, the mainland Chinese subsidiary of Skypro Group, one of the Hong Kong government’s mask suppliers, was found to have violated hygiene regulations and was subjected to administrative penalties by the Fujian Provincial Medical Products Administration.

Hong Kong is facing its fourth wave of the COVID-19 pandemic, with all sectors on high alert. However, an examination of official Chinese and Hong Kong documents and records by our station has revealed that a Chinese-made surgical mask brand purchased by the Hong Kong Government Logistics Department (GLD) for approximately US$7.09 million (HK$55 million) had its Xiamen subsidiary, Skypro Medical Products (Xiamen) Co., Ltd., subjected to administrative penalties earlier this month after the Fujian Provincial Medical Products Administration identified hygiene violations.

The Hong Kong government, however, has not publicly addressed the incident.

It is understood that masks supplied by the company concerned have already been distributed to various government departments, including the Housing Department.

The company stated that the two batches of masks involved in the violations had been destroyed and that the products in question had not entered Hong Kong.

In Hong Kong, a Housing Department employee revealed that the department had recently switched from CSI masks manufactured by the Correctional Services Department to several brands of masks manufactured in mainland China.

One of these products was labeled as being manufactured by the Xiamen-based Chinese medical company Skypro Medical Products (Xiamen) Co., Ltd. (hereinafter referred to as “Skypro Xiamen”).

According to an announcement issued by the Fujian Provincial Medical Products Administration on November 5, 2020, Skypro Xiamen had been “sealing and packaging disposable medical masks at an unauthorized production site.”

The sealing and packaging procedures were carried out in a non-cleanroom environment.

Two batches of products, totaling 26,800 masks and valued at approximately US$1,224 (RMB 8,040), were sealed and packaged in a non-clean area.

The authorities imposed an administrative fine of US$11,423 (RMB 75,000) on the company and confiscated masks bearing production batch numbers 202006080 and JD20006.

Separately, according to information published on the Xiamen Customs website, masks exported by Skypro to Japan and Singapore in April of that year were repeatedly subject to fines because the declared goods did not match the actual products.

Awarded a HK$55 Million Government Contract in February

A review of Hong Kong Companies Registry records found that Skypro Xiamen was founded in 1998 by Hong Kong resident Wong Suet-yee.

The group operates in Hong Kong under the corporate name Skypro Medical Supplies Company Limited (hereinafter referred to as “Skypro Medical”).

According to the Government Logistics Department’s list of contracts for the procurement of epidemic prevention supplies covering January 1 to July 31 of that year, Skypro Medical was awarded a contract worth US$7.09 million (HK$55 million) in February to supply 22 million surgical masks.

Dr. K Kwong (Dr. Kwong Si-shan), a chemistry PhD graduate of the University of Hong Kong who has frequently tested different mask brands since the beginning of the pandemic, said in an interview that if manufacturers fail to carry out proper disinfection during the final packaging process, masks may develop mold when stored for extended periods.

He believes that because public funds are involved, the government has a responsibility to investigate the matter.

Dr. K Kwong said:

“Generally, the raw materials used to manufacture masks are sterile. However, because people are involved in the manufacturing process, skin particles, eyebrow hairs, and insects may come into contact with the masks during production.

“If there is no final disinfection procedure, or if the finished products are not disinfected during the final packaging stage, the masks may contain large amounts of bacteria, which can grow on organic matter such as skin flakes.

“Using the masks within two or three months of production may not pose a major problem, but if they are stored for a long time, mold may develop.

“SKYPRO has supplied a large quantity of products to the Government Logistics Department, so I believe the government needs to follow up on this matter.”

Company Involved: The Products in Question Did Not Enter Hong Kong

According to a report submitted by the Government Logistics Department to the Legislative Council in August 2020, the department purchased more than 320 million masks between January and July for distribution to 11 government departments.

The Social Welfare Department received the largest allocation, totaling more than 13 million masks.

The Housing Department received the second-largest allocation, with 8.27 million masks, followed by the Food and Environmental Hygiene Department, which received more than 7.6 million masks.

The Hong Kong Police Force ranked fourth, receiving more than 3.6 million masks.

In response to inquiries from our station, Skypro Xiamen’s Hong Kong subsidiary stated that the two batches of masks involved in the incident had been destroyed and that the products concerned had not entered Hong Kong.

The company also indicated that some of its products were still being supplied to the Hospital Authority, but these were not the products involved in the violations.

Government Logistics Department Repeatedly Accused of Purchasing Problematic Masks

In response to inquiries from our station, the Government Logistics Department stated that the defective masks involved in the incident were products requiring sterilization before individual packaging and were therefore a different type of product from the masks previously purchased by the department from the supplier concerned.

The Housing Department stated that all masks not directly procured by the department were supplied and distributed by the Government Logistics Department, and that none belonged to the problematic batches involved in the incident.

The Government Logistics Department had previously faced repeated allegations that it had been misled into purchasing problematic masks.

For example, in September of that year, the department announced that it had spent nearly HK$100 million purchasing 32 million masks claimed to have been manufactured in Japan.

It was subsequently discovered that not all of the masks had originated in Japan.

The case was referred to the Customs and Excise Department for further investigation.

All masks involved in that case remained in storage at the Government Logistics Department and had not been distributed to any government department for use.

Screenshot: Skypro Xiamen was subjected to administrative penalties in early November after the Fujian Provincial Medical Products Administration identified hygiene violations. (Source: Official website of the Fujian Provincial Medical Products Administration)