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teachers, thus making the teaching staff even more homogeneous

in outlook and beliefs. The students, on their part, had

developed considerable rapport with and respect for the teachers. Under their guidance, the students were also given many oppor- tunities organising for themselves various kinds of group activities,

some of which involving the entire student population. These

attitudes and capabilities developed among the students had some bearing on the events that were to come later.

III.

14.

Financial Mismanagement and its Disclosure

The Committee is of the view that financial mismanagement

at the School and its disclosure were central to the entire

Precious Blood Golden Jubilee Secondary School affair. Financial

mismanagement provided those responsible for disclosing

it as well as those who considered themselves its victims

a justifiable reason for dissatisfaction and complaint.

15.

In the aided sector, a school management is allowed considerable flexibility in the use of grants allocated by the

Education Department, for example, block grants for Janitor staff and for Administration. A sponsor is also permitted to engage in trading activities in the School, provided that the profits derived are used for the benefit of that particular

school. In the case of the Precious Blood Golden Jubilee

Secondary School, Sister Beatrice Leung enjoyed an even greater

degree of flexibility in that she was both Supervisor and

Principal. The other two members of the Management Committee

were nuns of the Precious Blood Congregation. They appeared

to have little knowledge, not to mention control, of the affairs

of the School.

16.

There does not seem to be any evidence that the

funds wrongfully diverted were put to personal use. The Committee was told that a considerable amount of the misappropriated funds were repayments to the Precious Blood Congregation for sums

of money advanced by the Congregation. It was put to the

/Committee

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