ED Irregularities at kindergartens

Bolder action needed to improve accounting transparency

Rampant accounting fraud at some privately-run kindergartens is triggering a public rage, pushing the education authorities to rush forward countermeasures. The government, however, cannot avoid criticism for having neglected its duty of preventing such irregularities over the past year.

It is urgent for the authorities to ensure accounting transparency in private kindergartens. Around 2 trillion won ($1.8 billion) in state subsidies has been paid annually to 4,220 private preschools across the country. And these subsidies were without a doubt from taxpayers' money.

The sum accounted for about 45 percent of the operational funds of these private kindergartens, and should have not been appropriated for private purposes. This explains why the government should take bolder measures to improve accounting transparency at such facilities. It would be better for private preschools to adopt the state accounting system, instead of the private one, to root out the diversion of funds.

According to data released by the Ministry of Education for the National Assembly audit, 5,951 cases of financial irregularities occurred at 1,878 private preschools from 2013 to 2017. The audit found that approximately 26.9 billion won ($23.7 million) had been misappropriated. A kindergarten principal misused part of her preschool's operation funds to buy a luxury handbag and pay for hotels and karaoke bars.

The related authorities need to investigate all the privately-run kindergartens thoroughly and disclose the names of preschools and their heads that they find to have been involved in irregularities.

In addition, the government should take back subsidies from kindergartens implicated in the misappropriation of funds and other irregularities. Law enforcement authorities should also criminally prosecute the corrupt heads of preschools.

The education ministry must shut down private kindergartens which have been found to have committed irregularities; and also build more state-run and public preschools. Currently state-run and public kindergartens account for only 25 percent of the total, meaning more than seven out of 10 children attend private institutions.

This heavy reliance on private kindergartens has also contributed to fostering their irregularities. It is imperative to reform the preschool system to solve the problem.