Audits needed to stop wide-spread private school fraud

Commenting a story in today's Sydney Morning Herald, Dr Kaye said: "The majority of both federal and state subsidies to private schools are paid on a per student basis.

"The sacked principal of Lakeside Christian College in Tweed Heads, Mr Lyn Mazey, has not only admitted that he inflated student numbers to boost his school's government grants.

"He has also alleged that colleagues in other private schools also falsify enrolments to inflate subsidies.

"It is little wonder that non-government schools can cheat the system with confidence, given that Lakeside Christian College had not been audited in 16 years.

"The $2 million fraud at Lakeside Christian was only exposed because the school was closed after failing to pay its debts.

"Last year the Commonwealth handed over more than $1.64 billion to NSW non-government schools in per capita grants.

"The Iemma government provided a further $631 million on the basis of claimed enrolments in Catholic and independent schools.

"In no other sector of the economy is so much public money put into private hands without proper checks and balances.

"It is time for NSW Education Minister John Della Bosca and his federal colleague Julia Gillard to institute a system of regular audits of enrolment claims from non-government schools.

"With annual payments of $2.3 billion at stake, they would be derelict in their duty if they did not.

"Mr Mazey's allegations now make it impossible for them to ignore private school abuse of public funding," Dr Kaye said.

For more information:    John Kaye 0407 195 455