The government could be forced to take over the running of a school in Yau Tong after its operator decided to pull out amid controversy over management problems and the school's future prospects. The Pegasus Social Service Christian Organisation, the sponsoring body of Pegasus Philip Wong Kin Hang Christian Primary School cum Junior Secondary School, yesterday announced it would surrender its operating rights to the 500-student school. The organisation said the school, funded under the direct subsidy scheme, had faced major problems since it was set up in 2001 to take advantage of education reforms. Pegasus said education policy meant the school was unable to comply with the new 3-3-4 secondary school system, as the school, running under a provisional licence, was still in the process of applying to operate senior forms. Pegasus said it had decided to hand the operation of the school over to the Education Bureau in August and asked the bureau to take over its management, including appointing management committee members and operating senior forms. The Education Bureau said it had heard nothing from Pegasus, but pledged to closely monitor the situation. Contingency plans would be put into place if necessary, it said. 'We will take appropriate measures to ensure the normal operation of the school and make sure the students' studies will not be affected. Measures are being considered, such as appointing another organisation to take charge of the school or a temporary takeover by the bureau,' a spokesman said last night. The school has been under the spotlight over alleged managerial and financial problems, such as an alleged conflict of interest involving its former principal, after doubt was cast over her qualifications for the position. Last Friday, parents and school representatives met to discuss the school's future, with a focus on when senior forms could be rolled out. School supervisor Ada Wong Ying-kay said she had not been told about the move but promised that students' welfare would be the top priority and their studies would not be disrupted.