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Following is a question by the Hon Andrew Cheng and a written reply by the Secretary for Home Affairs, Mr David Lan, in the Legislative Council today (Wednesday):

Questions:

In its Strategic Plan covering the period 1991-1995 (the "Strategic Plan"), the Hong Kong Sports Development Board stated that, among the two types of National Sports Associations ("NSAs") registered respectively under the Societies Ordinance (Cap. 151) and the Companies Ordinance (Cap.32), it would prefer to provide funding for NSAs set up under the Companies Ordinance. In this regard, will the Government inform this Council whether it knows:

(a) if the Board has provided funding in the past three years to the Amateur Sports Federation and Olympic Committee of Hong Kong, China (the "ASFOC") which is registered under the Societies Ordinance; if so, of the amount allocated each year; if it has evaluated whether such funding was in line with the funding principles specified in the Strategic Plan of the Board; and

(b) if the ASFOC has transferred a sum in the amount of HK$30 million to a Trust Fund, with its Chairman at that time appointed as the Permanent Honorary President of the Fund; if so, whether the Hong Kong Sports Development Board has assessed if such arrangement made by the ASFOC was in line with the funding conditions and spirits which the Board adopted; if an assessment has not been made, what the reasons are?

Reply:

Madam President,

From its recurrent subvention from the government, the Hong Kong Sports Development Board (SDB) provides funding to the ASFOC to help meet the latter's administrative and programme expenses as well as expenditure arising from participation in major games such as the Olympic or Asian Games. The amount distributed to the ASFOC in the past three years is as follows:

Year Amount

---- ($ million)

-----------

1995-96 1.481

1996-97 1.768

1997-98 1.887

One of the criteria adopted by the Board in allocating government subvention to the NSAs, as well as to the ASFOC, is that these organisations should be non-profit making, registered under the Societies or the Companies Ordinance and have a proper constitution. All organisations which receive subvention through the SDB are required to submit returns showing how the money has been spent in the form of properly audited accounts. The ASFOC is required, just like the NSAs, to submit to the Board an audited annual return on its subvented activities.

The ASFOC operates with full autonomy under mandate from the International Olympic Committee (IOC). It works with the SDB and the sports community to promote and develop sport in Hong Kong. While the ASFOC is fully accountable to the SDB for the money it receives from the Board, it also has its own resources deriving from its membership of the IOC and also from private donations. The way in which it manages these resources is outside the purview of the Board.

End/Wednesday, November 11, 1998

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