In a recent development, the head of Hong Kong’s Audit Commission, Nelson Lam Chi-yuen, has signaled that the city’s tertiary institutions could undergo comprehensive audits, examining “every aspect of legal compliance,” including adherence to the National Security Law (NSL). This announcement follows a special audit of the Chinese University of Hong Kong (CUHK) by the Audit Commission, marking the first instance of a publicly funded university being included in its financial evaluation.

Lam clarified that the audits would extend to all universities in Hong Kong, ensuring compliance with the law, as long as they meet the criteria of receiving over half of their funding from public sources. The NSL, imposed by Beijing in 2020, criminalizes acts of secession, subversion, terrorism, and collusion with foreign forces.

The CUHK audit, conducted between April and the release of the annual report last week, attracted attention as the first instance of the commission examining a university’s procedures and potential financial issues related to the NSL. Despite criticism from alumni and legislators, Lam emphasized that the Audit Commission treats all institutions equally, denying any specific targeting of CUHK.

The audit report drew attention to CUHK’s externally operated businesses, including campus facilities like canteens, bookshops, and other amenities. It highlighted the university’s failure to incorporate national security safeguards in tender documents, contracts, and guidelines related to these facilities. CUHK’s vice-chancellor acknowledged the recommendations, and the university pledged to revise relevant clauses to comply with the NSL.

While some critics argue that the audit is overly nitpicking and micromanaging, others see it as a reflection of the increasing influence of the NSL on various aspects of public spending, including universities. The ongoing scrutiny and audits underscore the broader impact of the NSL on Hong Kong’s educational institutions, raising questions about autonomy, transparency, and accountability.

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