Pyne orders audit of Islamic college

AN urgent financial audit of Sydney Muslim school Bellfield College has been ordered by Education Minister Christopher Pyne.

AN urgent financial audit of Sydney Muslim school Bellfield College has been ordered by federal Education Minister Christopher Pyne in the wake of allegations a senior school official faked millions in building invoices for work never done at the school.

Yesterday The Australian revealed that the principal of the Islamic Bellfield College, Sam Cannavo, had resigned last month in disgust over the management of the 230-student school, making a formal complaint to police alleging that up to $2.1 million had gone missing from the school.

Mr Cannavo and the school's builder had given police allegedly falsified building receipts with millions drawn on an account managed by a senior school official.

Mr Cannavo also alleges landfill on the school site contains asbestos and the school's sewerage system had frequently overflowed, at times entering the school's drinking fountains.

Bellfield College, in southwest Sydney, received $4.1 million from state and federal governments last year, meaning 80 per cent of its revenue comes from taxpayer funds.

The school received an extra $2.2m in capital grants last year, and is eligible for the highest levels of government assistance available to independent schools.

Yesterday, Mr Pyne announced he had ordered an immediate audit into the school's millions in commonwealth recurrent funding.

"Having been briefed by the department, I have today directed them to commence an immediate audit of the school's commonwealth recurrent funding grants," Mr Pyne told The Australian.

"The department is also working with the Association of Independent Schools of NSW as the Block Grant Authority, to determine whether there is evidence of non-compliance with respect to capital funding."

Mr Pyne said "upon the conclusion of these investigations, the government will determine what further action may be appropriate".

The Association of Independent Schools, the NSW Department of Education and the Commonwealth Department of Education were all made aware of the issues at the school in July but were yet to order any type of investigation into the school.

Both NSW Education Minister Adrian Piccoli and the AIS claim they do not have the power to act, despite legislation disallowing independent schools that receive government funds to operate for profit.

Mr Piccoli did not comment on the development yesterday, and has previously refused to say when he was first made aware of the issues at the school.

Mr Pyne said it was "a matter for the NSW government as to whether any allegations concerning state government funding require further action".

NSW Greens MP John Kaye sent a letter to both Mr Piccoli and Mr Pyne on September 31 outlining his concerns with Bellfield.

Mr Piccoli's office has acknowledged he received the letter.

Mr Kaye told The Australian he planned to pursue the matter in parliament, saying that the "fringes of private education have become the new wild west, with shonky operators offered the opportunity to get rich quick on the public purse".

"Taxpayer funds are poured into schools with few questions asked and little opportunity to ensure that the money is being spent in the public interest," Mr Kaye said.