Hong Kong lawmakers say private schools should be required to disclose financial status

Hong Kong private schools should be required to disclose their financial status, lawmakers have said after the indebted Han Academy failed to refund at least HK$6.2 million (US$797,380) worth of debentures to parents who had withdrawn their children from the institution.

A lawmaker assisting parents said on Thursday the academy in Aberdeen now planned to raise money from more than 100 parents, with each one donating HK$5 million, but he was concerned about the effect the financial crisis would have on the school’s ability to enrol students in the future.

Legislator Edward Leung Hei said parents only realised the school was in dire straits when it became unable to refund the debentures.

“Parents have been continuously asking about the flow of these funds and how much is left, but the school did not make the information public, causing concern about whether the money is already gone,” he told a radio show.

According to Leung, current policies only require schools to disclose certain accounts, including tuition, transfer and capital fees, while other items such as bonds do not need to be made public.

“Moving forward, it is necessary to disclose the status of these bonds, how much money is left, where it has been spent, not only to be accountable to current students but also to those who will soon enrol and need to purchase school bonds.”

Leung said he had been assisting about 50 parents with children at Han Academy since receiving the first call 1½ years ago, with the unpaid amount of the cases he had dealt with standing at HK$30 million.