Mr Ivan Sze, Chairman of the Board of Governors (centre) shares at the press conference of Tung Wah College on 30 September 2014. Also attending the press conference are Prof. Andrew Chan, Vice-Chairman of the Board of Governors (second from right), Mr Lester Huang, Vice-Chairman of the College Council (second from left), Mrs Viola Chan, Chairman of the College Council (right), Prof Sylvia Fung, Acting President of Tung Wah College (left).(September 30, 2014 - Hong Kong) A press conference was held on 30 September 2014 at Tung Wah College announcing the “Report by the External Investigation Panel on the Allegations of Improper Procurement of Legal Services of M&A Revisions and on Unauthorized Disclosure of Internal Information.”
A report on the procurement and related approval procedures for obtaining legal services for the revisions of the Memorandum and Articles of Association (“the M&A”) for Tung Wah College ("TWC") was published on the front page of a local newspaper on 10th February 2014. In light of the seriousness of the allegations, the Board of Governors ("BoG") of TWC appointed an independent External Investigation Panel (“the Panel”) to examine whether or not the allegations were valid. The Panel was chaired by former Registrar of the High Court of Hong Kong, Mr. Chan Cheuk, Christopher, with Mrs. Chan Wong Shui, Pamela (former Chief Executive of Consumer Council) and Ms. Chiu Lai Kuen, Susanna (the Immediate Past President of The Hong Kong Institute of Certified Public Accountants) as members.
The Panel conducted a detailed investigation and has submitted its Report (“the Report”) to the Board of Governors. Main findings by the Panel are summarized as follows:
a) There was NO real or actual conflict of interest regarding the procurement of legal services for the revisions of the M&A. Outsiders without full comprehension of the facts of the case may have perceived otherwise.
b) The payment by TWC to P.C. Woo & Co. was reasonable. The legal services rendered by P. C. Woo & Co. and Clifford Chance were in fact different. Both the rate P.C. Woo & Co. charged and the total amount of its invoice were reasonable.
c) When the incidents occurred, there was no clear and well-established regulation in existence. TWC staff members had observed a set of draft financial policies and/or procedures which were in the course of evolution and change, as their guide or code of practice. It was observed that some TWC staff members were not familiar with certain provisions of the financial policies and procedures and regulations and they should have been better equipped.
d) The payment was approved by the then President. The President had power to make such payment.
e) The Panel was unable to confirm who has disclosed the internal information of TWC to the media. The disclosure of information to the media was selective, and its sole purpose was to discredit the Chairman of the College Council Mrs. Viola Chan. The media got hold of some piecemeal information and made it into sensational headlines.
The BoG of TWC has accepted the Report by the External Investigation Panel and would like to thank the Panel members for their hard work and professionalism in their thorough investigation. There was no wrongdoing on the part of Mrs. Viola Chan, Chairman of the College Council, and Mr. Lester Huang, Vice Chairman of the College Council, nor was there any intention to derive any personal gains or attempt to grant favor to anyone. The BoG regrets that the incident had negatively impacted their names and the reputation of the College. The Panel’s findings will put an end to this incident.
The incident has caused much embarrassment to P.C. Woo & Co. which has provided valuable legal services to TWC. The BoG thanks P.C. Woo & Co. for its understanding throughout the incident and being accommodating with all these unfair accusations.
The BoG wishes to express appreciation in respect of the services, and the unreserved contributions, of Mrs. Viola Chan, Chairman of the College Council, and Mr. Lester Huang, Vice Chairman of the College Council. TWC is privileged to have the benefit of the services, experience and wisdom of the College Council under their leadership. The BoG will continue to work closely with Mrs. Chan and Mr. Huang and all other members of the College Council to lead TWC as it continues to go from strength to strength.