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Thomas Chan

The chief of Chinese University confirmed yesterday that its wholly owned research arm in Shenzhen did not report three staff to mainland police - after seeking legal advice - over embezzlement and false financial claims found in an internal investigation more than a year ago.
The case drew concerns that differences between Hong Kong and the mainland in handling such incidents would harm the university's long-established reputation.
There were also suggestions the CUHK Shenzhen Research Institute was trying to put a lid on its alleged tax evasion by not reporting the trio to police.
CUHK vice chancellor Professor Joseph Sung Jao-yiu said the institute did not have tax issues.
"[They] might have threatened that if we fired them, they would do certain things," he said. "But we definitely have evidence to prove they embezzled money and made false expenses claims."
Asked why the police were not alerted, he said: "We decided what to do according to our legal advisers' suggestions."
He said the institute reported the case to Shenzhen taxation authorities instead, as the missing money would affect its accounts balance.
The institute started investigating the three staff at the end of 2013, confirmed the claims and dismissed them early last year, Sung said.
But the scandal did not become public knowledge until a recent posting on a Facebook account named CUHK Secrets.
According to the posting, three employees were found pocketing school funds, but they threatened to expose the institute for not paying taxes on its programmes if it went to the police.
The posting was missing from CUHK Secrets yesterday.
Sung said the three claimed for false expenses of up to several thousand dollars and embezzled "$10,000 to $20,000", without specifying the currency.
Grilled by reporters over the taxation claims, he revealed the university had received an anonymous letter citing what the university had done wrong. He did not reveal details of the letter.
Founded in 2009, the institute is a base for staff members to conduct research, development, training and technology transfer.
Lawmaker Gary Fan Kwok-wai, who also sat on the CUHK council, said it discussed the matter at an April 14 meeting. "Many council members were astonished by the incident," he said.
Fan added: "I am very worried that differences in the systems and the ways in which things are handled in Hong Kong and on mainland China would tarnish the university's reputation."
Student union president Wong Ching-fung said: "The case could be a serious blow to the university's integrity and reputation." Such behaviour might be a criminal offence, he said. "How could it be so lawless that the case was not referred to police?"
The student union urged Professor Benjamin Wah Wan-sang, provost of CUHK and acting dean of the institute, to meet them in three days and the university to launch an independent investigation.


Police left out of staff fraud case at Hong Kong university's Shenzhen arm

CUHK vice chancellor Professor Joseph Sung Jao-yiu said the CUHK Shenzhen Research Institute  did not have tax issues. Photo: May Tse

The institute started investigating the three staff at the end of 2013, confirmed the claims and dismissed them early last year, Sung said. Photo: SCMP Pictures

News

Hong Kong

Education

University's Shenzhen arm sent the trio packing after internal checks but did not call police, vice chancellor says after a Facebook exposé


University's Shenzhen arm sent the trio packing after internal checks but did not call police, vice chancellor says after a Facebook exposé.


Police left out of staff fraud case at Hong Kong university's Shenzhen arm

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}University's Shenzhen arm sent the trio packing after internal checks but did not call police, vice chancellor says after a Facebook exposé

University's Shenzhen arm sent the trio packing after internal checks but did not call police, vice chancellor says after a Facebook exposé