A decades-old Hong Kong boarding school operated by a Christian charity embroiled in a HK$50 million (US$6.4 million) fraud case will cease operation next month.
Christian Zheng Sheng College, which was established in 1985 to help drug addicts, would close on July 7, supervisor Chui Hong-sheung confirmed on Friday.
The decision came more than four months after police arrested four directors of its parent organisation Christian Zheng Sheng Association and sought another three for allegedly stealing HK$50 million in donations raised to support the institution’s operations.
The Security Bureau earlier provided HK$1 million from the Beat Drugs Fund to meet the urgent needs of the boarding school to help students who were preparing for their public exams.
Chui said he understood the institution’s bank account was left with about HK$100,000, which could only be used for emergencies, such as paying utility bills and for students’ meals.
He also said numerous teachers had resigned and only eight remained for the 10 students left, but some subjects 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.
According to a letter endorsed by the directors of the organisation and seen by the Post, the school had been facing great challenges after police froze its bank account and the management could no longer pay staff salaries.
The letter said it was “impractical” to ask staff to continue working and the board of directors came to a “difficult decision” to cease operation.
Teachers would stop working on July 7 and the NGO would try to clear all salary and severance payments as soon as possible, it added.
Police arrested the four directors of the non-profit organisation on suspicion of conspiracy to defraud in January, while it launched a manhunt for the three others.
The Post has learned that the trio – college principal Alman Chan Siu-cheuk, 63, founder Lam Hay-sing, 69, and Chan Yau-chi, 62, have left the city.
