Four Zheng Sheng Association directors arrested for defrauding HK$50m in donation; three wanted

Four directors of Christian Zheng Sheng Association were arrested by police for conspiracy to defraud for pocketing some HK$50 million in donation. Police also issued arrest warrants for three directors who have fled overseas, including Alman Chan Siu-cheuk, principal of Zheng Sheng College. 

Police said they had received reports by the end of 2023 about the messy accounts of the association. They then launched an investigation and found that Chan started a campaign on social media to raise funds between October and December 2020, citing financial deficits. 

Yet, it was revealed that only less than 10 percent of some HK$45 million in donations received in 2020 was allocated for the development of the college. 

The probe unveiled over 300 transactions as well as purchases and sales of properties have been made from the Association accounts between 2020 and 2023, with some of the funds transferred to the personal bank accounts of the concerned directors.

There were also 13 transactions to overseas accounts in the U.S. and the United Kingdom, etc, from 2022 to 2023, involving some HK$50 million fund of the Christian Zheng Sheng Association.

Police discovered that some of the directors had tidied up their personal assets six months before the start of the fund-raising campaign, such as selling their properties in Hong Kong. 

Police therefore conducted an operation on Wednesday and Thursday and arrested four male directors of the association, aged 34 to 77. Officers also raided the arrestees’ homes, offices and other premises including the audit company, seizing relevant documents. 

Police said the investigation is ongoing and they may make more arrests. 

Iu Wing-kan, acting senior superintendent of the New Territories South crime headquarters, said the operation targets the directors but not the association and police wish not to affect the 17 students of the college. 

He added that police had notified the Security Bureau’s Narcotics Division, the Social Welfare Department and the Education Bureau before conducting the operation. 

According to the association’s website, the association was established in 1985. It is a non-profit organization run by Christians and aims at helping drug addicts. In 1998, Christian Zheng Sheng College was registered on the list of Hong Kong government high schools and became the first high school in Southeast Asia with rehab functions. 

Back in 2009, the college and the principal, Chan, were investigated by ICAC over possible corruption claims. The Christian Zheng Sheng Association was also alleged to have set up a travel company and operated vice establishments in the mainland, which is not allowed according to the Inland Revenue Ordinance as it is a charitable organization.

The anti-graft watchdog later terminated the investigation and apologized to the school after finding no corruption or malpractice.

The college was involved in another controversial incident in the same year as some residents opposed its relocation proposal to Mui Wo.

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