Two former charter schools under microscope for growing debt, illegal board appointments
Two former charter schools in New Zealand are under government investigation for severe financial mismanagement and governance failures. The Ministry of Education has replaced the schools' boards with commissioners after discovering illegal appointments and mounting debt.
Why it matters
This highlights the risks associated with privatized education models and the necessity of strict regulatory oversight in public-funded schooling.
Growing debt, an illegal board of trustees, and curriculum and management fees totalling hundreds of thousands of dollars a year prompted Education Ministry intervention at two former charter schools .
Documents provided under the Official Information Act show the ministry identified serious governance and finance problems at Middle School West Auckland (MSWA) and South Auckland Middle School (SAMS).
The ministry dismissed the boards of both schools, replacing them with commissioners in July at South Auckland Middle School and in August at Middle School West Auckland.
A document outlining the case for a commissioner at SAMS said the school was at risk due to factors including low cash, arrears to the ministry for payroll, and serious procurement weaknesses.
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