Students wont get money back

AROUND 50 students who are owed more than $100,000 by the HTI Education Group, which went bust last month, will not be getting their money back.

At a meeting yesterday at the office of HTIs liquidators, Chio Lim & Associates, the companys creditors were told that they were unlikely to see a cent of their money, even after HTIs assets are recovered.

The company, which ran the private City Training Centre, Regent Commercial Institute and EMS International, went bust with debts of $1.8 million. Chio Lim said HTIs assets, if recovered, will amount to around $98,000.

Chinese national Liu Tian, 22, who is owed $5,960 by the company, said after the meeting that she was sorely disappointed.

Ms Liu had, like many other students, taken her case to the Small Claims Tribunal, but Chio Lim said it would not improve their seniority in terms of receiving compensation.

HTI also owes $500,000 to the Singapore Tourism Board (STB) and more than $100,000 in staff salaries, Central Provident Fund (CPF) contributions and unpaid taxes. Other claimants include former directors, who invested in the company, a bank, suppliers and HTIs landlord.

Chio Lim said that outstanding salaries, CPF contributions and taxes will take priority when the companys debts are settled.

HTI first made the news last month when The Straits Times reported that more than 100 complaints had been lodged against the company this year by students who claimed that they were misled about the courses on offer.

The STB, which had provided the figures, said that it had met students after the allegations surfaced in May and that 83 of them had received compensation in June.

Between August and early last month, when the company went bust, 17 more complaints were lodged with the STB and the Chinese Embassy. The STB had been helping students find alternative schools and providing advice to those who want to take legal action.

2004.11.6 The Straits Times