Smart Nursery funding termination temporarily halted by court order

The Social Welfare Bureau’s (IAS) plan to terminate funding for the government-subsidized Smart Nursery and reclaim its premises has been suspended by a court, which ruled the appeal unfounded.

IAS president Wilson Hon confirmed that the case is still under judicial review and that administrative procedures are on hold.

In March, it was reported that the IAS would stop funding Smart Nursery in August and reclaim its facilities.

The bureau confirmed this decision, stating, “After considering the relevant statements, we decided to terminate the cooperation.” The reasons were formally communicated to the nursery on March 24, with confirmation of receipt by its staff.

Neither party has directly addressed the reasons for the termination.

However, the nursery stated on social media that the discussions were “merely technical issues related to accounting systems or legal applications, not involving any principles of cooperation or major arrangements.”

In April, the daycare center announced that the court had approved its preservation proceedings, suspending the IAS’ decision.

Additionally, the court’s website showed that on June 5, the intermediate court reviewed an appeal made by the president of the bureau regarding this decision and ultimately ruled against the bureau, deeming the appeal unfounded.

The crèche issued its fourth formal statement last month on social media, urging IAS to immediately enforce the court order and fulfill the bureau’s core responsibilities to support the center’s normal operation. It emphasized, “Do not continue to waste public funds on unnecessary lawsuits, and do not deprive children of their learning opportunities or parents of their right to choose.”

The statement also criticized the authorities for potentially acting “based solely on the personal wishes of the president,” asserting, “As the president, one must recognize that the resources being used are public funds, not personal assets. Therefore, we solemnly urge the director to allocate public resources for the benefit of the city’s community.”

Speaking to the media yesterday regarding the court order and the nursery’s accusations, Hon said that the court proceedings had not yet formally begun.

He stated, “We need to observe the entire process. During the main proceedings, it is not appropriate for us to comment at this time.”

Referring to the preservation measures, Hon noted that pending a decision from the court, the relevant administrative actions must be suspended until the overall chief complaint is resolved. However, he reaffirmed that the relevant cases “are still in the main trial period, the main lawsuit has not yet commenced, and the judicial process remains ongoing.”

Regarding the incident, Commissioner Against Corruption Ao Ieong Seong publicly stated a month ago that the CCAC had received a complaint from the person in charge of the nursery. She added that the case was being followed up through administrative complaints, including investigating whether the IAS had engaged in any administrative misconduct during the process. At that time, she confirmed that the case was still under investigation.