Han Academy fails to pay back parents over HK$30m in debentures

Parents of students of Han Academy - a private school in Wong Chuk Han had filed police reports that they could not redeem over HK$30 million worth of debentures.

Private schools in Hong Kong usually require parents of new students to pay a debenture in addition to the tuition fee.

The news came after a parent went public that the school had failed to return HK$600,000 worth of debentures two years after his daughter had left the school.

DAB lawmaker Edward Leung Hei said on a radio program this morning that he has received over 50 parents who claimed to have invested more than HK$600,000 in debentures. Some noted that the school assured them a monthly return of HK$10,000, but they have yet to receive any of the promised funds.

Police said they have received 11 reports from the parents so far.

In response to media inquiries, the Education Bureau said it has been monitoring and investigating the management and financial situation of Han Academy.

In addition to urging the school to develop and update emergency contingency plans as necessary, Secretary of Education Christine Choi Yuk-lin said she has also requested the school to suspend the collection of school debentures and to provide a clear explanation to the Bureau regarding the school's future development.

Choi said it will continue to monitor the school's operational situation, maintain close communication with relevant stakeholders, and ensure the well-being of the students.

Parents were also reminded to gather sufficient information before enrolling their children in private schools, and understand the school's financial situation, the purpose and rationale of the fundraising plan, and carefully read the terms of the contract.