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Duo who ran defunct school admit to failing to refund students more than $174,000

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SINGAPORE - Two managers of a defunct private school admitted on Wednesday (24 April) to failing to refund course fees of more than $174,000 after it was shut down.

Joxer Tang Yudong, a 29-year-old Chinese national, and Denise Pek Siew Gek, a 41-year-old Singaporean, both managers of Kings International Business School (KIBS), each pleaded guilty to one count of failing to refund a total of $174,138.50 course fees to 34 students within two months of ceasing KIBS’ operations.

The fees, which ranged from $5,670 to $6,470 for each student, were for courses in the Diploma in Maritime Studies. Those with the diploma could apply for the bunker surveyor examination administered by the Maritime and Port Authority of Singapore (MPA).

KIBS had its registration cancelled by the Council for Private Education (CPE) after MPA informed CPE that KIBS was offering its diploma to students who did not attend classes.

The CPE - now known as the Committee for Private Education - conducted investigations into KIBS from 6 November 2014. The charges for these offences, including how it allegedly furnished false material to the CPE, are still pending against Pek.

Following its investigations, the CPE told Tang and Pek on 29 January 2015 that it intended to cancel KIBS’ registration.

On 20 April that year, it issued a notice to the duo about the cancellation of the registration with effect from 5 May 2015. The CPE also directed that they either fully refund by 5 May the students who had not completed their course as of 20 April, or arrange for these students to be offered a place at another private institution with their expenses fully paid by KIBS.

In the same notice, the CPE also ordered that the classes cease with immediate effect.

Tang and Pek appealed the decision but were overruled on 22 June 2015. The duo were instead given an extended deadline of 3 July 2015 for the course fee refunds. However, they failed to meet the new deadline.

KIBS resorted to activating an industry-wide course fee protection scheme but only $30,348.89 was disbursed to it. The affected students received their refunds as late as 4 August 2016.

Separately, Tang and Pek made a partial restitution of $2,500 to one student on 15 July 2017.

The duo will be sentenced at a later date.

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