B. Role of the ICAC -

On February 1, 1977, 3 teachers, accompanied by Mr. Szeto

Wah, President of the Professional Teachers' Union, went to see

Mr. Jack Cater, the Commissioner of ICAC, with a view to seeking

advice from him.

1. How the ICAC viewed the matter

At the meeting, the teachers gave Mr. Cater a very detailed

report on the abuses and misappropriation of school funds.

They

also indicated to Mr. Cater that the funds were channelled to a

bank account of the religious order. Mr. Cater said that the funds

might be used for charitable purposes but the teachers pointed out

that the Church should not use unethical, or possibly illegal

means to exploit students and the janitor staff to raise money

for charitable purposes. Then Mr. Cater explained very clearly

that the ICAC would only deal with cases that involved criminal

intention and that the ICAC would only take action if there was

formal complaint. The three teachers agreed to lodge a formal

complaint on the understanding that:

a

i) The ICAC would handle the case if there was evidence

of corruption.

ii) If evidence was inadequate, the ICAC would not take

any action.

iii) If evidence of criminal offence was detected, the ICAC

would transfer the case to the Police without having to consult

the teachers.

iv) If irregularities were found but neither corruption

nor criminal offence was involved, the case would be transferred

to the appropriate department, such as the Education Department,

with the permission of the complainant.

v) If the teachers were found to be supplying false

information, the ICAC would take appropriate action against the

complainants.

2.

Actions taken by the ICAC after the complaint

On February 12, 1977, investigators of the ICAC first

contacted the school-bookkeeper, Miss Kwok Pui-ti.

9

She was asked

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