TNAG-0799-FCO40-1003-Dispute-over-closure-of-Precious-Blood-Golden-Jubilee-Second-1978 — Page 85

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mismanagement. As of June 1977 there were one senior

education officer, six education officers and three assistant

education officers in the establishment of the Department's

Schools and Servicing Branch overseeing 114 aided secondary

schools in the whole of Hong Kong.

26.

The Education Department began to be directly involved in the School when it was approached by the

Management Committee, on the 12th April 1977, to investigate

financial irregularities and was informed of the intention

of the Precious Blood Congregation to withdraw from the

sponsorship of the School. At this point, the Department

immediately took two courses of action. One was to send an

audit team to the School on the 19th April 1977, as well as

appointing Mr. P.C. Fung, the Area Education Officer, whose

schedule of duty included the School, to be an additional

member of the Management Committee. The other action was

to persuade, apparently with the assistance of the Roman

Catholic Bishop, the Precious Blood Congregation to continue

with its sponsorship for the time being, as it would not

be in the interest of the students and the teaching staff

if a change of sponsorship was to occur in the middle of an academic year.

27.

With the benefit of hindsight, we feel that the

weeks immediately following the disclosure of financial

mismanagement in the School, i.e., the period between mid- April and June 1977, was a critical period in the entire

affair. Whilst polarisation had followed as a direct and

immediate result of financial mismanagement, feelings and

attitudes on both sides had not yet hardened at this stage.

/28.

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