In Hong Kong, some private schools raise funds by issuing bonds to parents. Several members of the Legislative Council have received complaints from over 50 parents of the Han Academy, stating that after their children withdrew from the school, they did not receive refunds for the HK$600,000 capital levy, with an estimated total amount involved exceeding HK$30 million. The police have indicated that they received reports from 11 individuals last month concerning the failure to refund bonds purchased from this school, involving a total of approximately HK$5.8 million.
The capital levy is a form of borrowing from parents to support the school's infrastructure development, typically subscribed to by parents upon their children's enrollment. According to the Academy website's "Tuition and Fees" page, one of the school construction bonds has a face value of HK$600,000 per unit, to be paid in full before enrollment.
The police reported that between Nov. 15 and 18, they received reports from 11 citizens who had purchased school bonds for around HK$5.8 million when their children enrolled at a school on Wong Chuk Hang Road. However, they did not receive refunds after their children withdrew, suspecting fraud and subsequently filing reports.
In response to the incident, the founder of the Han Academy, Xu Li, admitted to not refunding the bond payments to parents but expressed that the school cannot simply shut down due to losses. She requested parents to give the school a five-year grace period, during which they plan to enroll more new students to repay all debts within that timeframe.
The Education Bureau (EDB) stated in response to inquiries that they have been closely monitoring the management and financial situation of the school. Apart from urging the school to formulate and update its emergency response plan accordingly, they have demanded the school cease collecting capital levies and provide a clear account of its future development direction to the EDB. The Bureau will continue to oversee the school's operations, maintain close communication with relevant stakeholders, and safeguard the welfare of students.
EDB also emphasized that if a private school fails to abide by the terms and conditions of the relevant contracts, parents should seek legal recourse. If there are suspicions of illegal activities, they should report to the appropriate law enforcement agencies. Additionally, the Bureau reminded parents that the operation and financial status of private schools are influenced by various factors. Before enrolling their children in private schools or considering participation in fundraising programs, parents should gather information about the school, understand its financial status, the purpose and rationale behind fundraising plans, and carefully review contract terms.
Related News:
International study shows HK students' outstanding performance in mathematics and science
Comment