There must be proper checks and balances in the English Schools Foundation to ensure cost-effective use of resources, transparency of operation and accountability of outcome, Secretary for Education & Manpower Professor Arthur Li says.

Speaking at the Legislative Council hearings of the Public Accounts Committee today, Professor Li said the foundation's management and governance are lagging behind public expectations of a modern organisation.

"I must reiterate that we are not seeking to belittle ESF's contribution to Hong Kong's education. Overall, its students are doing fine, its schools are doing fine, and its teachers are doing fine.

"However, its management, and if I may say so, its senior executive management and its governance, are lagging behind public expectation of a modern organisation. We should focus on value for money and governance."

Allegations rebutted

He was surprised that someone attributed the responsibility for the foundation's wastefulness to the Education & Manpower Bureau.

The bureau has been participating in the foundation's Executive Committee on the basis of trust and co-operation, Professor Li stressed.

"Just as in the case of aided schools, the Education & Manpower Bureau is not represented on any ESF school councils. How would the bureau know if the problem was not even reported to the Executive Committee?

"In the Education & Manpower Bureau, there are only six officers, from Assistant Education Officer to Permanent Secretary, with varying degrees of involvement with the ESF, among their many other responsibilities, whereas the ESF headquarters has a staffing establishment of over 50 persons working full time."

Tackle the root of the problem

Although the foundation has used its academic achievements to defend its costs, the secretary said unsatisfactory school administration and inappropriate entertainment allowances are not necessary bedfellows of quality education.

Professor Li said the foundation's governance and management problems did not start yesterday. He urged committee members to tackle the root of the problem and place responsibility where it should lie.