Principal rows with Islamic council

THE principal of a Muslim school in Adelaide is embroiled in a dispute with the nation's peak Islamic body.

THE principal of a Muslim school in Adelaide is embroiled in a dispute with the nation's peak Islamic body over questions of financial management.

This follows concerns uncovered by a federal audit of schools across the country that are managed by the Australian Federation of Islamic Councils.

The Adelaide school receives almost $5 million a year in federal and state government funding.

Julia Abdelale has sought legal advice from the Independent Education Union over her position as principal of the Islamic College of South Australia.

This came after the chairman of the school's board, Farouk Khan, called Ms Abdelale into his office last week to discuss a restructure that involved terminating her contract.

Under the terms of her contract, she is prevented from discussing financial or management matters at the school with anyone. Ms Abdelale is also a director of the school.

Muslim education sources told The Australian Ms Abdelale had control of the school's finances until this was taken over by AFIC. There is no suggestion she has acted improperly.

"Julia has tried to run the school honestly, but has had difficulties working with the board and AFIC," the source said.

An audit ordered by federal School Education Minister Peter Garrett after revelations in The Australian this year that millions of dollars in "management fees" and retrospective rent were being paid by a Sydney Muslim school to its manager, AFIC, also found problems of financial disclosure and management at the Adelaide school.

The Islamic College of South Australia, in the Adelaide suburb of West Croydon, received nearly $3.3m in general recurrent funding from the federal government last year and $1.3m from the state government.

A spokeswoman for Mr Garrett said the audit identified matters of concern in relation to the Adelaide school, including poor record-keeping of transactions between the school and AFIC; a lack of proper documentation or no documentation of rental arrangements; and insufficient information about an interest-free loan from AFIC.

The spokeswoman said Mr Garrett had instructed his department to follow up these matters with the school.

AFIC president Hafez Kassem claimed yesterday that Ms Abdelale had offered her resignation and wanted to leave the school, a statement disputed by her family and the union.

Mr Khan refused to comment yesterday.