Hong Kong boarding school embroiled in fraud scandal ceases operations but will not close

In its latest statement, the board stated that “all previous decisions and behaviors related to (Jacob) Lam Hay-sing and (Alman) Chan Siu-cheuk have nothing to do with the new board,” referring to the association’s founder and former director.

“Due to financial difficulties, we will temporarily suspend the operations of the college but will not close it as rumored,” it added.

In addition to Lam and Chan, another member of the former board is also wanted by the police in this connection, while four others were arrested in January in connection with the theft of HK$50 million in donations to finance the university’s operations.

Founded in 1985 in Ha Keng on Lantau Island, the college offered support to young people with drug problems or on probation. It also offered private boarding schools.

Siu said the charity announced it was cutting ties with Lam and Chan after reading media reports accusing the new board of being controlled by them despite the pair’s resignations in April.

“Someone was telling the media nonsense, so of course we had to react,” he told the Post. “We have done a lot for the school, why should we close it? We are only stopping operations due to some difficulties.”

Siu said the new board is working hard to resume “normal operations” at the college, but is still struggling with a lack of funds and is in the process of lifting the freeze on bank accounts “step by step.”

He declined to provide further details on how this would be achieved, but revealed that he and Lau, who is based in Taiwan, would travel regularly to meet with officials from the Education Bureau and the Drug Enforcement Division of the Security Bureau.

The panel’s conciliatory tone was a departure from the panel’s talks with authorities last week. A statement on Saturday was combative, accusing the authorities of withholding HK$4 million while “owing” the charity another HK$4 million in construction costs and social grants.

This in turn prompted the Security Bureau to condemn the association, ordering Lam and Chan to surrender to repay the embezzled funds, and claiming that the authorities did not owe the college any money.

The statement said the new board now had “confidence” in the police’s management of the club’s bank account and that there were no outstanding amounts from the government.

“Under numerous constraints, the new board had to make an urgent but practical decision, accept corrections from the relevant ministries and listen humbly to the opinions of others.”

The board’s efforts to change the association’s previously problematic communications with authorities came in the wake of other signs of internal discontent, including the recent resignation of four members of the new board.

College principal Chui Hong-sheung and three others – Wong Yiu-ngan, Yu Wai-kit and Yuen Shu-tong – resigned last Friday.

Chui told The Washington Post that he was not consulted on the decision to cease operations and that the board did not put the item on the agenda of the meeting, which he did not attend.

He also said that Lam and Chan, who had moved to the US and the UK respectively, continued to attend online meetings of the new board after their resignations and expressed their opinions.

“No matter what we said in the meetings, they didn’t listen, so we felt there was no point in staying on the board,” Chui said of the new board, adding that the resigned directors “were afraid of getting into legal trouble.”

Siu declined to comment on the resignations.

At least 15 students are affected by the college’s suspension. The college said 12 students are undergoing drug rehabilitation, including five who are on probation and will be transferred to other centers.