Four years after pulling the plug on its controversial business company, the New Westminster school district is dissolving the overseas venture.
The decision to dissolve the district’s business company, which provided students in China and Korea access to the B.C. curriculum, comes after the company resolved an issue with the Canada Revenue Agency regarding an outstanding tax assessment, according to a report by the school district.
While the company has no balance owing, its remaining funds are not sufficient to cover any outstanding liabilities, which will need to be paid in order to dissolve the company. Because the district is the sole shareholder, it’ll be on the hook for any costs associated with the company’s dissolution.
The business company ceased operations in October 2013. At the time, then-superintendent John Gaitpman said it was unknown how much it would cost to dissolve the company.
Now, secretary-treasurer Kevin Lorenz estimates the final bill could be up to $40,000, according to the district report.
It is expected the school board will officially do away with the company at its Oct. 24 meeting.
The school district founded its business company in 2002, when the B.C. Liberals passed legislation that allowed school district to market and deliver the B.C. curriculum abroad. The New Westminster school district was the first in the province to create a for-profit company under the new legislation; it ran a school in China and acted as a consultant for another program in Korea.
The decision to open the school was a contentious one from the start. In the first five years of its existence, the school district invested approximately $1 million into the company. It took several years for the business company to pay back the loan and start bringing in a profit for the school district.
In all, the district received about $226,000 in profits from the business company over the years, according to the district report.
