The sponsor of a troubled Yau Tong school that is giving up control of it will not seek compensation for ending contracts to run the library and information services and provide social workers. However, Pegasus Social Service Christian Organisation still intends to remove some fixtures and fittings from Philip Wong Kin-hang Christian Primary School cum Junior Secondary School. 'All resources bought under the name of the school will remain. For those bought under the name of the sponsor body, some of them will be taken away and some will be donated to the school,' said the school's supervisor, Carman Leung, who is chairwoman of Pegasus. Cables for computers, for example, will not be removed. 'Even if we cut them we can't use them elsewhere,' she said. Pegasus did not say what items would be removed. Pegasus told the government last month that it would give up the right to operate the school. The government demanded that it relinquish the right by July 14. At a meeting yesterday between Pegasus representatives and Education Bureau officials, Ms Leung asked in vain for a grace period to remove the fixtures and fittings. While Ms Leung said before yesterday's meeting that Pegasus would not seek compensation for the school contracts, it remains unclear how contracts signed with other parties before she became the school's supervisor would be dealt with. Ms Leung said school representatives and bureau staff would meet weekly from next week to discuss details of its takeover by new sponsors. The bureau has received 25 expressions of interest from would-be sponsors of the school - which is a direct subsidy school, meaning it receives a subsidy from the government based on student numbers and is free to decide its curriculums, fees and entrance requirements. Fukien Secondary School is one of those interested. 'We are confident we can run the school in a through-train mode, which means all Primary Six graduates of the school can get school places in secondary schools managed by us,' its principal, Lam Kin-wah, said. Dr Lam, who is chairman of the Direct Subsidy Scheme Schools Council, hopes the government will announce which group will run the school by July 7 at the latest. 'Students will be off for holiday on July 14,' Dr Lam said. 'We hope that we could at least have one week to talk to students, parents and teachers and communicate with them more before the new school year.' The bureau said it would examine the submissions that it had received this week and make a decision by the middle of July. The financial condition of the school was another concern, Dr Lam said. 'The budget reports of the past two years seem to have some problems. We hope the matter will be cleared up soon.' The school has not submitted audited accounts for the past two years. Officers of the Independent Commission Against Corruption have studied the school's situation. Ms Leung said a draft audit for one of the two years had been finished. Kwan Pak-keong, the Education Bureau's chief school development officer for the Kwun Tong district, said its staff were checking the school's papers and had not found any irregularities. A member of the school's board of directors, Tse Ka-ho, said board members were fixing a date to meet Ms Leung to discuss the audits. 'New sponsoring bodies certainly have to learn the school's financial situation before making a decision on whether they want to take over the school or not,' he said.