Hillcrest Christian College loans probed by schools watchdog

A strife-torn Gold Coast private school is being investigated by a watchdog in relation to huge loans to a company run by the principal and college board directors.

Hillcrest Christian College at Reedy Creek

A PRIVATE schools watchdog has launched an investigation into huge loans from a strife-torn Gold Coast Christian college to a company run by the school principal and board directors.

The State Government’s Non-State Schools Accreditation Board has received a number of complaints in relation to Hillcrest Christian College at Reedy Creek, and they will be on the agenda at a board meeting tomorrow night, sources say.

They include concerns about more than $600,000 in loans to I Love Reading Pty Ltd, a company directed by college principal Jeff Davis and two of the college’s board members, deposed chairman Len Oldfield and Jame Lewis.

Hillcrest Christian College principal Jeff Davis

Concerns have also been raised with the NSSAB about Hillcrest funds being used to pay rent on an Adelaide property leased to the man behind a literacy program now run by I Love Reading.

The developments follow days of drama at the Baptist Church-run college, where Mr Davis has been embroiled in bullying allegations, two senior staff members were stood down and the school chairman dumped at a heated annual meeting.

The Independent Education Union has written to the school demanding an independent investigation into allegations of bullying of its members by Mr Davis.

Mr Davis told staff last week he was “completely overwhelmed by the issues that confront Hillcrest” and was “truly seeking God’s wisdom”.

A financial report given to church members at the annual meeting — where some church company members and a board member were barred — reveals $606,000 in loans from the college to I Love Reading.

The company was set up in 2017 with the aim of selling the phonetic-based literacy program to other schools, but is believed to have racked up hundreds of thousands of dollars in losses.

The annual report notes that despite the first of three $200,000 in loans due to be repaid by December 31 last year with interest of 5.25 per cent, “the principal and interest on all three loans remains outstanding”.

The accounts, which list the loans as an asset, reveal the college’s revenue and profit slumped last year as expenses soared by almost $3 million.

Hillcrest Christian College at Reedy Creek

n a statement this afternoon, Hillcrest said I Love Reading was a wholly owned subsidiary of the college, which was entitled to “any profits”.

“The college, through ILR, has developed a unique literacy program designed to facilitate the rapid learning of reading English,” the statement said.

“The program takes the English Phonetic Code, technology developed by the Mamone family, and packages it into a practical and easily understood resource for literacy development.

“This program is used extensively and successfully at the college, and has also been sold to schools across Australia.”

The principal told staff last week he had nothing to hide and that the college had appointed “Çhristian solicitors” to conduct an independent investigation.

“This is not about me protecting my job, this is about protecting process,” he told a staff meeting.

“As the leader of this school, I will lead it in the most Godly way that I know and I will allow everyone the right to be assumed innocent.

“Unfortunately, that courtesy is not being given back.”

Originally published as Hillcrest Christian College loans probed by schools watchdog