Investigation: Pupils taught in huts as head pockets £400,000

A headteacher who faces the sack over allegations that he received unlawful bonuses took home more than £400,000 in a year — four times his official salary — the Standard can reveal.

An auditor's report alleges Sir Alan Davies was part of a culture of nepotism and rewards that saw staff take home at least £1.6 million in bonuses and other extra payments.

Sir Alan, head of 1,900-pupil Copland Community College in Wembley, received "what appear to be unlawful and irrational payments" from funds that should have been spent on education, according to Brent council's confidential investigation. A copy of the investigator's initial findings, seen by the Standard, alleges:

At least 10 senior staff — and Sir Alan's caretaker son — received rewards under the school's "sharing in success" bonus policy.

Sir Alan took home £403,278 last year but his basic salary was £103,000.

The bonuses were approved by the school's chairman of governors, Dr Indravadan Purshottamdas Patel.

The full amount of bonuses has not yet been calculated, but the total extra payments known so far is £1,565,700.

Last week, Sir Alan, his deputy Dr Richard Evans and bursar Columbus Udokoro were suspended over allegations that the bonus scheme broke the law. Children's Secretary Ed Balls said he was "extremely disturbed" by the payments.

But the investigator's findings revealed the scale of the payments was far greater than originally feared.

As a foundation school Copland has more control over its own budget and assets than a community comprehensive run by the council. Ministers want more schools to become foundation trusts, with powers to run their own affairs. But while Sir Alan and his colleagues benefited from bonuses, the school's buildings fell into disrepair.

In 2006, inspectors warned the rundown classrooms were undermining pupils' education. A shanty-town of temporary huts now stands where a new sixth-form block should be, while the humanities department had to cope with a major sewage leak. History teacher Shane Johnschwager, NASUWT union representative, said: "If the kids were cattle the authorities would have closed us down. My room has been painted once — by me, in the school holidays with paint I paid for.

"I have holes in the wall, a broken desk, old furniture, no interactive whiteboard, broken blinds, a flaking ceiling. Other rooms are worse."

The school has been earmarked for redevelopment for six years. Under the plans, a £120 million "village" will include new school buildings, two gyms, a pool and floodlit all-weather pitch, plus 453 flats and shops.

But the development, overseen by Sir Alan, has setbacks. The school racked up a £1 million debt to a property firm when an earlier deal broke down.

Yet, according to the Brent council investigation, Sir Alan was given rewards of £231,000 in the past two years alone for project managing the development, on top of his basic salary. Dr Patel claimed Sir Alan deserved "every penny".

The scale of the bonus culture emerged at a meeting on 29 April between Sir Alan and Brent's chief investigator, Simon Lane. When pressed by Mr Lane Sir Alan "could not recall" why he had received one payment of £12,500 last year "and said he would have to check".

He was not alone in receiving "substantial" extra payments. According to the auditor's report, Sir Alan, his son Gareth, Dr Evans and Mr Udokoro shared £458,000 for project management relating to the new development between 2007 and 2009.

In addition Sir Alan, three deputy heads and a number of other staff, including his son, received "significant bonus payments in 2007-08 and earlier years", the auditor found. These known bonus payments — which are bound to be a fraction of the total handed out — amount to a further £865,200.

The report said Sir Alan "could not explain" exactly why he received such bonuses, adding: "Either he or the chair (of governors) put down some ideas as to what they thought the staff should be paid. These were then checked with Dr Evans to see if they were affordable. Then the amounts were taken to the Pay Review Committee where they were approved."

The council said there were "numerous additional payments of significant amounts" to senior staff and others at the school. Sir Alan insisted that Dr Patel had approved the payments in conjunction with the school's pay committee, and that a budget for bonuses had been properly drawn up.

The investigators disagreed. The report said: "The council believes there to be no lawful and/or rational basis for the payment of these sums."

The final area of concern raised by investigators was the apparently widespread nepotism. The headteacher's son, son-in-law and sister were all employed. The wife and mother of the deputy head of finance were given jobs, along with the accountant's brother, the son and daughter of the assistant accountant and the nephew's wife of the chair of governors.

"In some cases salaries paid to these members of staff appear excessive," the report said. "This tends to indicate that certain members of staff may not have been appointed on merit alone."

Last week the borough's director of children's services John Christie invoked rarely used powers to suspend Sir Alan, Dr Evans and Mr Udokoro, and gave the governors three weeks to explain themselves or face the sack.

In a letter to governors, Mr Christie said: "Funds which should have been used for the proper purposes of the school have been spent on what appear to be unlawful and irrational payments to staff." The school seems to have incurred a £1 million "financial liability to a development firm", he said.

Teacher Hank Roberts, who exposed the payments last month, called for police to be brought in. Mr Roberts said he believed he had made enemies by his actions.

He was suspended by Sir Alan over an unrelated matter. The day after Sir Alan's suspension, Mr Roberts was reinstated.

Brent council said its inquiry into the allegations against Copland was ongoing. Sir Alan was not available for comment last night. Mr Udokoro today said he was prevented from making any comment under the terms of his suspension, but last week rejected any suggestion of wrongdoing.

Dr Patel could not be reached last night but has defended the decision to award bonuses. Gareth Davies said today he was prevented from making any comments until the inquiry had been completed.

Philip O'Hear, Copland's acting headteacher, said the school was "shocked" by what had happened.

Sir Alan Davies, headteacher: suspended.
Allegedly received unlawful bonuses and other payments of £631,500.

Dr Richard Evans, deputy head: suspended.
Allegedly received unlawful bonuses and other extra payments of £341,000.

Columbus Udokoro, bursar: suspended.
Allegedly received unlawful bonuses and other extra payments of £72,000.

Gareth Davies, maintenance staff: still working.
Allegedly received unlawful bonuses and other payments of £38,000.

The council says there were many other payments.