Education is supposed to be the sole mission of a school. But the financial scandal surrounding the private Jin-Wen Institute of Technology (景文技術學院) exposes the lucrative business opportunities that politicians and organized crime have found in the running of a private school.
According to information provided by the board of the Jin- Wen Institute, the value of the school's tangible assets is at least NT$2.8 billion.
The chairman of the institute is in charge of a staff of 1,100 and the nearly NT$2 billion in tuition receipts paid by 13,000 students annually -- money that is often used as capital for the chairman's other investments.
Moreover, getting involved in school management provides board members with an avenue to build ties with political and business circles.
In return, schools are where the votes are for politicians, and an ideal place to shore up the reputation of those known to have connections with organized crime.
Politicians, private schools and their supervisors -- officials at the Ministry of Education -- form a solid triangle and their intricate relations can breed corruption when greed overrides educational goals.
Where are the profits?
"As long as there are purchases involved, there are profits -- textbooks, computers, school equipment, you name it," said Chang Hui-shan (
"Take textbooks for an example. Books are sold at a full price to students, but schools buy these books from book dealers at discount prices. There are huge profits right there," he said.
"Computer software is another example. One can buy a set of software for NT$100,000, but the price can be tripled when reported to the ministry," he said.
Construction deals
The gains from selling textbooks and equipment pale in comparison to lucrative construction deals, and it is in these projects where lawmakers and ministry officials step in.
Each year, the ministry of education earmarks a few billion NT dollars for school construction projects. Because of the small budget, the ministry can only grant approval to a few of the hundreds of applications it receives for funds.
An advisor for a construction firm, who asked not to be identified, told the Taipei Times that there would be many negotiations between schools, lawmakers and ministry officials would be involved with regard to which school would be subsidized by the ministry and how much the funding would be.
"It really depends on the personal connections of school leaders -- connections between schools and ministry officials, and between schools and politicians.
"Funding can more easily be received if lawmakers exert their influence on ministry officials," he said, adding that there were a variety of ways to establish these connections.
Chang said that schools spend a great deal of time and money on building such connections and that some schools are just like "public relations companies."
"The fee spent on public relations at certain private schools can reach NT$100 million per year. Presents are regularly sent to public officials and lawmakers, and it is common knowledge that officials enjoy free trips and meals arranged by schools," Chang said.
"But what's awful is that the funding provided for school construction is not always spent on the projects, or politicians manipulate to solicit schools to do business with the companies that are related with themselves," the construction company advisor said.
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