Police have arrested a couple on the suspicion of committing fraud in the bidding for the contract to supply bottled water to government offices on Hong Kong Island and parts of the territory's outlying islands.

Commercial Crime Bureau officers nabbed a director of a trading firm, aged 61, and his 57-year-old wife on Sunday after they were suspected of claiming in bidding documents that a Chinese mainland company was going to supply the drinking water.

The Government Logistics Department on Saturday partially terminated the contract it awarded to the trading firm after the mainland company informed the GLD that it had no agreement with the firm to supply the drinking water.   

Beside arresting the couple, police also confiscated 2,600 bottled water at a warehouse in Yuen Long. 

ALSO READ: HK police arrest 139 in crackdown on fraud

On Sunday, Secretary for Financial Services & the Treasury Christopher Hui Ching-yu convened an urgent meeting, where it was decided to conduct a review of the SAR government procurement system to ensure a similar incident does not happen again.

The Financial Services & the Treasury Bureau invited the Audit Commission to go over the tender exercise for bottled drinking water contract to find out if there was any negligence or deficiencies in the process.

READ MORE: HK to enhance anti-fraud efforts across city

A task force, chaired by Hui, will also be created to review the existing government procurement regime and plug any possible loopholes in the system. The GLD was also tasked to continuously monitor the contractual performance of the suppliers of bottled drinking water.