Int’l School Faces Millions in Debt, Students & Staff Affected

Source: OT-Team(G)，星岛新闻

  Han Academy, a private school in Hong Kong, is facing multiple complaints from parents after failing to refund over HKD 30 million in school development bonds. 

  The school's founder and chairperson, Xu Li, admitted that the non-profit Yili Le Sheng Education Foundation, which operates the school, is burdened with debts of around HKD 100 million and requires five years to resolve its financial troubles.

• Allegations of Fraud

Han Academy, established in 2017, initially gained a good reputation but has since been accused of breaching contracts. Parents claim they were misled into purchasing school development bonds worth HKD 600,000 each, with promises of refunds that were never fulfilled.

• Timeline of Events

  In October 2023, reports surfaced that Xu Li had sold bonds to families, promising refunds that never materialized. By November 2024, 11 citizens filed police reports, claiming they had been defrauded of HKD 5.8 million.

  On December 11, a legislative council member revealed that over 50 parents had sought assistance, totaling more than HKD 30 million in unpaid fees. The academy also owes around HKD 100 million in total, including HKD 80 million to parents and HKD 20 million in unpaid rent.

  Xu Li responded by proposing a five-year repayment plan, but many parents rejected this, questioning the academy's ability to repay them in the future.

• Financial Struggles

  Han Academy has accumulated losses exceeding HKD 200 million since its founding. The Yili Le Sheng Education Foundation has also been renting office space at a cost of HKD 487,480 per month. In addition, the Mandatory Provident Fund (MPF) Authority revealed that the school failed to pay pension contributions for 50 employees, totaling around HKD 250,000.

• Risky Bond Investments

  

  Parents are required to purchase a HKD 600,000 development bond for enrollment. While bonds can be resold after a year, they do not earn interest and are non-refundable. Recent scandals involving school bonds at other institutions have raised concerns about the risks of investing in such bonds, particularly if a school faces financial instability.

  In recent years, with the frequent exposure of debt crises at private schools in Hong Kong, such as Kelly Hill International School and Han Academy, concerns over the risks of purchasing school development bonds have grown. If a school faces mismanagement or a financial breakdown, there is a real possibility that bondholders may not receive timely refunds.