to confirm information supplied by the teachers. On February 25,

Mr. Chan Chung-ling, who was one of the three complainants, was

also interviewed by an investigator of the ICAC. The latter

implied that a nun was not likely to commit fraud but anybody

with any additional information about the case could always

approach the ICAC. Mr. Chan expressed that he was the one :that

had a thorough understanding of the matter, and Miss Kwok Pui-ti,

whom the ICAC had already contacted, had a full grasp of the

whole affair. But still the investigator insisted that anyone

sharing better knowledge of the matter should approach the ICAC.

However, it was not known if Sister Leung or any other staff of

the school was contacted, directly or indirectly.

3. The ICAC's reply to the teachers

On April 18, 1977, investigators of the ICAC verbally

informed the 3 teachers that no evidence of corruption could be

detected and suggested transferring the case, together with the

names of the 3 complainants, to the Education Department.

However, as the ICAC was supposed to keep confidentiality and as

the teachers themselves had already approached the school over

the financial irregularities, they refused the ICAC's proposal.

On April 22, the teachers sent a memorandum of the financial

irregularities to the Education Department to help with the

investigation.

On June 2, 4 months after the complaint was made, the

teachers were informed by the ICAC in writing that "no evidence

of corruption has been found" and that "a report on the enquiry

was considered on June 1, 1977 by the Operation Target Committee,

which consists of eminent members of the community and senior

officials, presided over by Mr. Cater, appointed to advise on

all complaints of corruption.

The members advised that no further

action should be taken on (their) complaint."

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