In a significant ruling, a Hong Kong court has ordered the liquidation of the scandal-plagued Christian Zheng Sheng Association, siding with the government after the charity failed to repay HK$61 million to a public fund amid a 2024 fraud scandal. The decision marks the end for the non-profit, which had been under intense scrutiny following allegations of financial misconduct.
The Christian Zheng Sheng Association was renowned for operating the Christian Zheng Sheng College at Ha Keng on Lantau Island, a facility established in 1985 to support teenagers struggling with drug addiction or those on probation orders. The college provided rehabilitation services until it abruptly ceased operations in July 2024, shortly after a major police crackdown.
Police arrested four directors of the association and froze its assets over the alleged misappropriation of HK$50 million in donations. The operation exposed deep irregularities within the charity's leadership and finances, prompting further investigations into the handling of public and donated funds.
Compounding the issues, three other directors wanted in connection with the case—principal Alman Chan Siu-cheuk, founder Lam Hay-sing, and Chan Yau-chi—have fled Hong Kong, evading authorities. Their departure left the association in disarray as it attempted to reorganize its governance.
Following the police action, the association replaced all of its directors, a move that violated a key clause in a 2017 funding agreement. That agreement, tied to renovations at the college, stipulated that the charity's leadership must remain unchanged from the time it received financial assistance from the Beat Drugs Fund Association, a non-profit governed by the Security Bureau.
The Beat Drugs Fund Association subsequently demanded repayment of HK$59.25 million in public money provided under the agreement, a figure that escalated to HK$61.4 million including interest. Despite repeated requests, the NGO ignored the demands, leading the fund to pursue legal action.
The court's decision in favor of the government underscores the severity of the breaches and the charity's non-compliance. Liquidation proceedings will now dismantle the association, closing a chapter on an organization once dedicated to youth rehabilitation but ultimately undone by financial scandal and governance failures.
