TNAG-0798-FCO40-1002-Dispute-over-closure-of-Precious-Blood-Golden-Jubilee-Second-1978 — Page 11

IN CONFIDENCE

BACKGROUND NOTE

PRECIOUS BLOOD GOLDEN JUBILEE SECONDARY SCHOOL

1.

The Precious Blood Golden Jubilee Secondary School at Ho Man Tin in Kowloon, Hong Kong, was a government-subsidized secondary school run by an Order of Catholic Sisters. The Hong Kong Government bore the day-to-day running costs of the school, as well as having made a contribution to the original capital cost. The school was founded in 1973 and had a reputation for. following more progressive educational policies than most schools in Hong Kong. Under the leadership of the original Principal, Sister Leung, the school attracted a number of radical-minded teachers who came to expect a considerable say in the way the school was run.

2.

The Principal, however, became involved in a serious financial scandal. Apparently because of a feeling that the Government had not provided as large a capital contribution as the school deserved (thereby leaving the Precious Blood Order with an unfair burden), Sister Leung diverted funds from the school to the Order. Several teachers at the school became aware of this and, in February 1977, made allegations about it to the Independent Commission Against Corruption (ICAC). The ICAC's investigations failed to produce any evidence of corruption but did indicate maladministration. At the request of the complainants, however, ICAC did not bring this state of affairs to the attention of the Hong Kong Education Department.

3. In April 1977 Sister Leung resigned and the other two nuns who, together with her, made up the School Management Committee, approached the Department of Education about the state of affairs at the school. The teachers claim that it was they who alerted the Management Committee to the fact that things had gone seriously wrong. The Department of Education initiated an investigation and Sister Leung was eventually brought to court and convicted on 10 charges of false accounting. She received a six-month suspended jail sentence. Some HK$ 320,000 were returned by the Precious Blood Order to the school.

INCONFIDENCE

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