Then principal of government-aided primary school charged by ICAC admits fraud of $270,000

2025-2-6

A then principal of a government-aided primary school, charged by the ICAC, today (February 6) admitted at the West Kowloon Magistrates’ Courts that he had made false representations about not receiving salary payments and being authorised to withdraw funds for organising activities to deceive the school into making duplicate salary payments to him for two months and granting him school funds totalling over $270,000.

Chen Yi-hsin, 47, then principal of Yan Chai Hospital Chiu Tsang Hok Wan Primary School, pleaded guilty to four counts of fraud, contrary to section 16A of the Theft Ordinance.

Magistrate Mr Peter Yu Chun-cheung adjourned the case to February 21 for sentence, pending the defendant’s background report. The defendant was remanded in custody of the Correctional Services Department.

The court heard that in early April and early May 2023, the defendant had made false representations to the school that he had not received his salaries for the months of March and April 2023 through bank autopay. As a result, the school was deceived into making duplicate salary payments for the two months totalling over $150,000 to him by issuing cheques.

Between May and June 2023, the defendant falsely represented to the school on two occasions that he had obtained the approval of the sponsoring body and the supervisor of the school to withdraw funds from its bank account for organising activities for staff and students, so as to defraud the school of two payments totalling $120,000.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had received the salary payments for the two months concerned through his bank account by autopay in late March and late April 2023 respectively. After receiving the payments of $120,000 from the school for organising activities, the defendant deposited them into his own bank account for personal use, and he had never spent the money on school expenses. The defendant left the school in late December 2023.

Yan Chai Hospital, the sponsoring body of the school, and the incorporated management committee of the school had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by ICAC officer Alex Lau.

An ICAC spokesperson notes that a school principal, as the leader of a school, should not use his official position for personal gains. The ICAC will continue to adopt its three-pronged strategy in safeguarding a clean education sector. In addition to stringent enforcement actions, the Commission has published a Best Practice Checklist on Governance and Internal Control in Schools and organised anti-corruption seminars for principals and staff to help fortify good governance and a culture of integrity in the sector.
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