Three held over childcare fraud linked to watchdog’s probe

The Judiciary Police (PJ) announced yesterday that three locals were arrested on suspicion of defrauding public funds, in a case linked to the corruption watchdog’s earlier probe into the Social Welfare Bureau’s (IAS) termination of a childcare center’s cooperation agreement.

On July 31 this year, the PJ launched an investigation into suspected public fund fraud at a Taipa childcare center, acting on an order from the Public Prosecutions Office (MP).

The investigation focused on a woman surnamed Ieong, who signed a subsidized cooperation agreement with the IAS in August 2019 to run a childcare center in Taipa. The center opened the following month. Because the bureau provided the premises and facilities rent-free and paid financial subsidies, including staff salaries, the funding counted as public resources, requiring the suspects to declare all income and expenditure and return any surplus.

Police said the suspects falsely declared employment in human resources and finance roles at the center, fabricating employment relationships and forging salary bank records to pass subsidy reviews.

The suspects allegedly defrauded the public entity of about MOP3.9 million and used it to pay their own salaries. Besides Ieong, the case involves two other people who falsely declared they worked in human resources and finance.

Checks following up on leads from the bureau’s inspections found that the two other suspects, along with a local man still at large, had never worked at the center. The alleged fraud dates back to January 2020. Ieong, identified as the alleged leader, is preliminarily linked to MOP1.8 million, while the amounts involved for the others and the total government funding remain under investigation.

Police arrested the suspects at their homes on Wednesday, while the male suspect who remains at large has been said to be staying outside Macau for an extended period.

Notably, the Commission Against Corruption (CCAC) completed its special investigation in July, found multiple violations by the childcare center, and confirmed that IAS’ decision to terminate the cooperation agreement was grounded in fact and law.

The watchdog’s report identified irregularities in staff appointments, financial management and use of subsidies. Inspections since 2020 found staffing below agreed standards, with some government-funded posts never actually filled. Some holders worked full-time elsewhere or were long absent from Macau, affecting childcare quality.

Audits also found unusual expenditures and a failure to return surplus funds to the government as required. The employment documents submitted were also seriously inconsistent with the bureau’s records, and the association refused to correct the issues despite years of requests.

IAS terminated the agreement in March 2025, prompting the nursery to file administrative proceedings, which it later withdrew. At that time, the center’s director told the public broadcaster TDM that the decision was unfair, noting that the two sides differed over accounting practices, but that the center had always submitted accounts as required and never intended to deceive.