A civil trial opened on Tuesday against Global Party Limited and its director over 32 million masks the Government Logistics Department bought in early 2020 for about HK$97 million, described as Japanese-made. The government alleges that most were made in mainland China. The defence says the supplier did not intend to defraud the government or breach its contracts.

In their opening submissions, the government’s lawyers said four contracts required the masks to be made in Japan by Japanese manufacturers. They alleged that about 85% of the masks supplied were made in mainland China. Information from the Japanese manufacturer, they said, showed Global Party Limited had ordered fewer than the 32 million masks needed to fulfil the government order.

The government’s lawyers also alleged that the supplier accepted a separate order from HSBC for 1.8 million Japanese-made masks at a higher price per mask than the government paid, and supplied the bank first. They said the supplier had represented that all the masks for the government were Japanese-made and provided a test report said to show testing in Osaka; it later acknowledged mixing mainland-made masks into the government supply.

Global Party Limited’s lawyers said delays at Japanese factories affected supply and that the HSBC delivery date came before the government’s. They argued that the supplier expected Japanese deliveries to continue and did not send masks to HSBC first in order to break its government contracts.

The lawyers also referred to an April 2020 letter from the Japanese manufacturer about delayed dispatches, which they linked to pandemic lockdown measures. They said that by June, after further delays, the supplier had sought to cancel its order and obtain a refund.

In a separate case, Global Party Limited admitted 18 offences under the Trade Descriptions Ordinance and was fined HK$360,000 in January 2024. Its lawyers argued that this did not establish fraud in the civil claim: the criminal charge concerned the fourth contract and was one of strict liability, which did not require proof of intent.

The Secretary for Justice is seeking HK$97.7 million in damages.