Culture clash: Secretary for Commerce, Industry & Technology Joseph Wong says it is incumbent on RTHK management and all levels of staff to comply with Government rules and regulations, to avoid irregularities.

In his latest value for money report, the Director of Audit says Radio Television Hong Kong lacks stringent controls on salary levels, staff attendance and overtime work. It also says the station needs to strengthen its financial controls and safeguard against irregularities, in particular by fostering a culture of compliance with government rules and regulations.

Secretary for Commerce, Industry & Technology Joseph Wong says the bureau welcomes the report's recommendations. To ensure their full implementation, he told reporters a high level, time-limited internal audit team reporting direct to the Director of Broadcasting will be established on May 2.

A chief treasury accountant seconded from the Treasury will lead the team, he said. Apart from officers from the treasury accountant and accounting officer grades, the team will have a senior auditor seconded from the Audit Commission.

The Independent Commision Against Corruption's Corruption Prevention Department will take part in the team's work in reviewing RTHK's systems, on a need basis. The team will submit reports to the Director of Broadcasting regularly, with a copy to the Commerce, Industry & Technology Bureau.

To monitor RTHK's follow-up work in respect of the audit report and the work of the internal audit team, the Permanent Secretary for Commerce, Industry & Technology will scrutinise the team's reports. If necessary, he will consult the Civil Service Bureau and the Financial Services & the Treasury Bureau and decide whether follow up action is needed.

Mr Wong says he has written to the Director of Broadcasting to ask him to provide a report within three months, to comment on the cases of suspected irregularities covered in the report.

He has asked the director to include the following in his report:

* whether disciplinary proceedings should be instituted against the staff concerned after due investigation;

* whether the management staff should take management responsibility for such irregularities; and

* proposals on how to build up and consolidate a culture of compliance with government rules and regulations.

"I must emphasise it is incumbent on RTHK as a government department, and on all staff in RTHK, to accept a culture of compliance with government rules and procedures, to improve fundamentally all the irregularities identified in the audit report," Mr Wong said.

He added the bureau will follow up the Director of Audit's Report "vigorously".

"We will strive to improve the governance of RTHK, further enhance its internal management and improve fundamentally the present situation."

In response to the report, the Director of Broadcasting noted he generally agrees with the audit recommendations. He has said that RTHK's management has always taken the issue of enforcement and monitoring very seriously and, in this regard, there have been improvements in RTHK.

The Director of Audit tabled its Report No. 46 in the Legislative Council today. Two chapters focus on RTHK's financial control and resource management, and its governance and strategic management.

It observed there were areas where RTHK staff did not comply with government rules and regulations and said to reduce irregularities RTHK as a government department must comply with such rules and regulations.

The Audit Commission suggested the Director of Broadcasting review whether RTHK's internal control measures are sufficient, and continue to foster a corporate culture of compliance with rules and procedures.

Fostering such corporate culture entails the RTHK management communicating with their staff at all levels, and demonstrating a set of core values and codes of conduct.

In recent years, the problems of production cost of TV programmes exceeding budget estimates have become increasingly serious, the report says, adding RTHK needs to improve its budgetary control system.