NUT call for full DfE investigation into 'Panama to Kilburn' free school provider with off-shore connections

Wembley Matters covered the links between the Panama Papers and the Kilburn Grange Free School several weeks ago 'From Panama to Kilburn - time for some questions to be asked'  LINK

The NUT has now taken up the issue, uncovering further information which leads them to state that there are serious questions to be answered on the connection between Mossack Fonseca, Bellevue Education and Bellevue Place Education Trust, which among others runs Kilburn Grange Free School in Brent.

The NUT call for a full investigation and report by the Department for Education.

This is their dossier.  It is longer than normal articles on this blog but it is a thorough investigation that repays close study.  Brent Council currently has a policy of encouraging free schools in order to provide additional school places. They should pay particular attention and press the DfE about its due diligence in the free school application process.

Click on 'read more' to read the dossier in full.

Bellevue Place Education Trust statement on Mossack Fonseca connection

This statement was posted on the Bellevue Place Education Trust  on Sunday April 10th by Mark Greatrex.  The Wembley Matters blog and Sunday Times article on BPET were published on the same day. LINK

Governance of Bellevue Place Education Trust

In response to the recently published Sunday Times article Bellevue Place Education Trust wishes to be very clear that the Bellevue shareholder who made an investment in Bellevue Education via a company registered by Mossack Fonseca in the British Virgin Islands has no connection with the Trust.

Bellevue Place Education Trust is a not for profit charitable trust set up with the sole intention to establish and maintain high performing schools in and around London.  The Trust was established by two parties, Bellevue Education and Place Group.  The Trust’s governance structure is clear as to the structure and who the members and trustees are.

Below for transparency, is our statement we sent to the Sunday Times.  We have made it very clear that Bellevue Place Education Trust is a not for profit charity that was approved by the Department for Education to manage and maintain state funded free schools.  The Trust is a separate, independent organisation from Bellevue Education that is solely focused on offering high quality education provision to its pupils.  We have some fantastic staff and governors who are supporting the delivery of this vision and we aim to see off these allegations as promptly as possible, enabling us to focus on our core purpose.

Below is the statement we have issued we have also included the Department for Education’s clear statement.

Statement from Bellevue Place Education Trust send to Sunday Times:

“Bellevue Place Education Trust is a multi-academy Trust, sponsoring seven primary Free Schools across London and the South-East. The Trust’s core purpose and responsibility is to establish, maintain and manage state funded Free Schools.  All Bellevue Place Education Trust schools are focused to deliver high quality education provision in areas where there is a shortage of primary school places.”

“Bellevue Place Education Trust is an independent charitable organisation, with six trustees, of which one is Mark Malley.  Trustees delegate responsibility to a Local Governing Body for each school, who appoint all staff (except the Headteacher), set the schools budget and ensure the curriculum meets the needs of the pupils, in line with the vision of the Trust.”

“In applying to be a Free School promoter, the Trust undertook stringent due diligence and was approved by the Department for Education and Charity Commission.”

A DfE spokesperson:

“We demand the highest moral and professional standards from anyone involved in educating our children and, in common with every free school proposal, Bellevue Place Educational Trust (BPET) was subject to detailed scrutiny. We are clear that no-one will be handed control of a school unless we are entirely happy with the result of the checks.

“Bellevue Education and BPET are separate organisations. Our records show the individual named is not in any way involved in the governance of BTEP schools. There are strict rules that prevent free schools and academies being run as for-profit organisations.

“These include due diligence checks, credit checks, and enhanced Disclosure and Barring Service (formerly Criminal Records Bureau) checks and may include police and other checks necessary to ensure the suitability of people to be part of the free school programme.  As part of those checks, we would look at an individual’s association with other people or organisations.”

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This is what the Evening Standard wrote about BPET in February 2014 LINK

Both partners clearly have interests in financial returns.

Bellevue Place Education Trust is a partnership between two companies, Bellevue Education, founded in 2003 by former prep school headmaster Mark Malley, and chaired by private equity investor Mawan Naja, and Place Group, a provider of educational advisory services, including “potential income generation” and the identification of “appropriate investment vehicles”, to groups setting up free schools and academies.

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These are the most recent accounts of the Belleveue Place Education Trust that I can find: 

 

From Panama to Kilburn - time for some questions to be asked

I was a little surprised when last year the Brent and Kilburn Times reported a House of Lords celebration of the achievements of Kilburn Grange Free School before it had opened.

This aroused my curiosity but it has been sharpened even further by a report on the  Panama off-shore funding controversy which appears to link  Kilburn Grange, funded by the DfE and with just 53 pupils, according to their website, with Mossock Fonseca.

Kilburn Grange Free School is part of a Multi Academy Trust, Bellevue Place Education Trust (BPET) and according to their website LINK:

Bellevue Place Education Trust (BPET) is a multi academy sponsor and we sponsor seven primary Free Schools across London and the South-East. Bellevue Place’s core purpose and responsibility is to establish, maintain and manage state funded Free Schools.

All Bellevue Place schools are focused to deliver high quality education provision in areas where there is a shortage of primary school places.

Bellevue Place is a new model for education delivery in the state sector. The Trust is a joint venture between two organisations who are passionate about providing high quality education provision. They bring together the very best of the fee-paying Independent sector – Bellevue Education Ltd – experienced in running 15 independent schools in the UK and Switzerland; with a highly-regarded education consultancy – Place Group – with experience in the state sector for efficiency of supply in setting up new schools and converting academies, along with driving value for money and compliance.

The BPET accounts are posted on the Rutherford School website LINK

The Bellevue Education Group Limited part of the Trust is of interest to the Sarawak Report LINK:

One of the clients of the off-shore incorporations firm Mossack Fonseca, exposed in the so-called Panama Papers this week, was PetroSaudi’s Tarek Obaid.

Using a web of off-shore vehicles, he and fellow director Patrick Mahony secretly invested some of the millions they obtained in illegal backhanders from Malaysia’s Development fund in a private education company that bought up some of the UK’s poshest private schools.

Documents acquired by Sarawak Report reveal that the two men are the secret funders behind the self proclaimed entrepreneur, Marwan Naja, who acts as Chairman of Bellevue Education, a fast growing business, which has acquired 12 lucrative schools since 2010.

The Bellevue Education Group, previously named The Really Great Education Company Limited, is officially run from Geneva, although its UK registered company address is the PetroSaudi headquarters in Curzon Street. In fact, the business is primarily owned by two vehicles named Plato One and Plato Two based in Hong Kong, which are in turn controlled by Mahony together with an off-shore company owned by Obaid called Maplehill Property Limited (BVI).

In the course of setting up the complex ownership structure in 2010 Marwan (who has just one share) reported he had:

 “taken specific tax advice from a firm of internationally recognised accountants which has confirmed to him in writing that no Tax will be payable.. as a result of any dividends, distributions or other returns..whether during the Investment or following an exit from the Investment”

The revelations will be an embarrassment to the high profile educationalist, Mark Malley, who set up the company, after what he claims was a highly successful stint as a headmaster, turning around failing schools.

He is the Chief Executive of Bellevue Education Group and owns shares in the fast expanding venture, which plainly seeks to cash in on a perceived burgeoning market for private early years schools in and around London.

  See LINK for Directors etc

Click to enlarge

It appears that the DfE is funding a free school  with taxpapers' money which has some slightly worrying connections.   We know according to some reports that eventually free schools and academies may be allowed to become profit making  but it would be worth the authorities checking where the money is going at present.

The staff, governors and parents of Kilburn Grange may have little idea of the ins and outs of the Trust and the school itself may do a wonderful job but perhaps they should be asking some searching questions about the Trust and its partners.