Directors wanted over Hong Kong charity fraud slammed as school closure to affect 10 students

The impending closure of a scandal-hit Hong Kong boarding school for drug addicts will take a toll on about 10 students and eight teachers, authorities have said while reiterating their condemnation of three wanted institution directors allegedly involved in a HK$50 million (US$6.4 million) fraud.

Secretary for Education Christine Choi Yuk-lin stressed on Saturday that the government would help the affected students but would not provide more funding to the Christian Zheng Sheng College in Chi Ma Wan.

“If some students want to keep studying, we will help them find appropriate school places,” Choi said. “If some wish to start working, as the age gap between the students is quite big, we will also communicate with them.”

She also said she was confident there would be a “seamless transition” as the administration had been following the case for some time.

Different government departments were also expected to follow up on the teachers currently working at the school, Choi said.

The Christian Zheng Sheng College, established in 1985 to help drug addicts, said on Friday that it would close on July 7.

The decision was announced more than four months after police arrested four directors of its parent organisation, the Christian Zheng Sheng Association, and sought another three for allegedly stealing HK$50 million in donations raised to support the institution’s operations.

Choi reiterated it would be “unreasonable and irresponsible” for the government to provide public funding to the school to help sustain its operations.

“The government’s resources are public funds … if we do this, we will be allowing these situations to happen and take a responsibility that should be taken up by the organisations themselves and hand it to be taken up by society and public funds,” she said.

On Friday evening, authorities said the relevant department had yet to receive any formal notice of the closure decision and slammed the “ugly and selfish” behaviour of wanted founder Lam Hay-sing and principal Alman Chan Siu-cheuk for disregarding the well-being of the students and teachers.

The government said it provided the college in March with more than HK$1.8 million in emergency funds from the Beat Drugs Fund to help students prepare for their public exams.

“If the college ceases operation, the responsibility is entirely on the former directors of the association who were wanted and fled the city, including Lam Hay-sing and Alman Chan Siu-cheuk, as well as the Christian Zheng Sheng Association which had close links with them,” it stressed.

“The government strongly condemns [Lam, Chan and the association] for maliciously cooking up the so-called suspension of operation.

“They are making excuses, ignoring the facts and blaming others for their unwillingness to solve the working capital problem. It is indeed disgraceful and irresponsible.”

The pair are among the three directors wanted by police. Another four were arrested on suspicion of conspiracy to defraud in January.

A CEO notice confirmed by college supervisor Chui Hong-sheung and seen by the Post blamed police for freezing the association’s bank accounts, which stifled its working capital, and promised to settle outstanding salaries and severance payments.

The government said the fugitives were stubborn, adding they used different excuses to prevent funds from being withdrawn from the bank to maintain the college’s operation. It urged them to solve the problems as soon as possible.

The administration said the Security Bureau’s narcotics division, the Education Bureau and the Social Welfare Department had been in touch with the students and offered them services, including counselling and options for further studies.

Chui said he had not participated in the directors’ meeting to discuss the school’s closure and was only notified of the decision afterwards.

He understood the institution’s bank account was left with about HK$100,000, which could only be used for emergencies, such as utility bills and students’ meals.

Chui, also a director of the association, said numerous teachers had resigned, with only eight left for the remaining 10 students. Some subjects, however, had to be cancelled due to the lack of manpower.

The supervisor earlier said the school on Lantau Island had borrowed HK$40 million from its parent organisation.

The Mandatory Provident Fund Schemes Authority, the city’s pension regulator, said the college had yet to pay HK$210,000 for its 20 employees’ pension and surcharge between February and April.

The authority said it would recover the contribution on behalf of the college staff if the school became insolvent and had to go into liquidation, adding that it would follow on whether the employer would make the payment for May.