By JOHN VAN KLAVEREN
MATTHEW Flinders Girls Secondary College is under investigation as part of an alleged $28 million Education Department slush fund.
The school was allegedly used as a “banker school” holding $4.8 million for high-ranking Education Department officials operating the slush fund, a Fairfax report revealed this week.
Victoria’s anti-corruption watchdog confirmed it was investigating allegations the slush fund was used to siphon money from needy schools around the state to pay for overseas trips, cars and conferences.
A 2011 audit uncovered the slush fund, operating as Program Coordinator Schools, ostensibly to help fund local education needs.
The audit reportedly found that funds were withdrawn from the accounts, held by schools including Matthew Flinders, and used for other purposes without proper documentation or financial safeguards.
The “banker schools” benefited from keeping interest earned on the money they held, with some also receiving extra grants.
The audit said the fund was operated in a way creating a high risk of fraud and presented State Government with a significant risk to its reputation.
The investigation comes at an awkward time for the newly-elected Labor Government because program was set up when the ALP was last in power.
An Education Department spokesman said the program supported schools to collectively deliver programs to suit their local needs.
“This can include sharing the purchase of music programs, counsellors and specialist support staff, professional development courses and sport activities across a group of schools. These arrangements are entirely appropriate,” the spokesman said.
“A departmental review of the program led to a range of recommendations to ensure funds are subject to strict controls.
“The recommendations included strengthened governance and audit processes and procedures. The department continues to review and strengthen processes for this program.
“The use of schools to bank funding for non-school purposes is banned.
“The department takes seriously its obligation to the Victorian public to operate in a transparent manner.
“Any use of taxpayer funds for personal expenses is utterly inconsistent with the Department’s policies and the Code of Conduct for Victorian public sector employees.
“Since 2011, the department has systematically strengthened auditing, purchasing and operational procedures and processes across the Department and referred matters – where appropriate – to IBAC (Independent Broad-based Anti-corruption Commission) for further investigation.
“The Department continues to fully cooperate with IBAC.
“Due to IBAC’s ongoing investigations, the department is unable to provide further comment at this time.”
