Smart Nursery-gov’t dispute remains a CCAC investigation

A Taipa international daycare center has been locked in a dispute with the Social Welfare Bureau (IAS) for over a year, and while the anti-corruption body is now reviewing the case and has promised to release its findings, the bureau maintains that Smart Nursery has long failed to meet the financial management rules required for subsidies.

The nursery, operated by the Zonta Club of Macau, faced the termination of funding and repossession of its premises at the end of March last year after the IAS cited financial management failures and a lack of consensus on cooperation principles.

The society subsequently criticized the authorities for mishandling the matter and filed a lawsuit. The case is now under review by the Commission Against Corruption (CCAC) and remained pending as of Monday, while the IAS website displays information on the second proposal to terminate the partnership and the related litigation.

According to the Social Welfare Bureau, the Zonta Club has, over an extended period, failed to meet the bureau’s requirements for funding oversight in terms of financial management. As the situation has persisted, the bureau has legally initiated the termination of the partnership – including suspending funding and demanding the return of the daycare center premises. The termination has involved multiple administrative lawsuits, some of which remain pending in court, and the bureau said it has no further information to disclose at this time.

The bureau’s website also indicates that the daycare center – which remains a funded entity – is currently in a state of suspended cooperation with the bureau pending the outcome of the litigation.

The IAS website posted news of the lawsuit, prompting the nursery to issue a statement recently reiterating that it had operated in full compliance with legal requirements and that there were no irregularities.

The center explained that the issue arose solely because it had recently opened while simultaneously dealing with the pandemic, resulting in a delay in updating personnel information on the bureau’s platform. It added that it subsequently received confirmation from bureau staff that there was “absolutely no element of fraud involved” and noted that the center’s cooperation agreement had been renewed. The center expressed “great surprise” that the bureau is now reusing the incident to compile an evaluation report.

The association further stated that it has filed a judicial appeal with the Court of Final Appeal seeking a unified judicial interpretation. It also noted that in the financial settlement for the 2019–2021 regular subsidy period, a refund of more than MOP2 million – including the aforementioned amount – had already been processed, with no remaining questions regarding these funds, and that it had proactively highlighted the refund matters in the auditor’s report.

The daycare center also noted that following concerns expressed by several parents about the litigation reported on the bureau’s website, it issued the formal statement. Meanwhile, the nursery’s website indicates that it has finalized admission lists for the 2026/2027 academic year, comprising 82 children in total.

The anti-corruption watchdog stated that it continues to follow up on the case through administrative appeals and is currently conducting an in-depth analysis of the matter, adding that it has recently taken note of the center’s statement and will announce the results to the public once the investigation is complete.