A school administrator has been jailed eight months by Eastern Magistracy for accepting a $100,000 loan from a cleaning contractor for renewing a school's service contracts for longer terms without its consent.

Magistrate Alan Wyeth ordered the defendant Jung Chul-woo, 49, to pay $15,600 in restitution to the school.

The offences occurred between July and December last year, when the defendant was responsible for overseeing the awarding of school contracts.

In July he approached Wong Kam-shing, operator of Master Gold Cleaning Services Company, Smart Light Security & Property Management Services and Tung Chun Engineering & Consultants for a loan of $100,000. Master Gold, Smart Light and Tung Chun were contractors for cleaning, security, and property management services at the school.

The defendant agreed to Wong's condition that instead of renewing the service contracts yearly, the three companies would be awarded contracts for a two-year term. In August, the defendant renewed service contracts with Master Gold, Smart Light and Tung Chun for two years.

The court also heard that in December, after paying three or four monthly instalments of $3,000 to Wong, the defendant told him he was unable to make further repayments. Wong told the defendant he would forgo the outstanding amount of the loan on the condition that the monthly cleaning fee for the school be increased by $2,600, and that the contract with Master Gold be extended to three years. The defendant agreed. He made out a new three-year cleaning contract with Master Gold, with the monthly cleaning fee increased from $51,680 to $54,280.