A failure of governance

I'm on record as saying that it's the quality and the effectiveness of governance that matters, not whether it is run by local authorities or academy trusts. In both cases, there needs to be effective oversight and action taken where needed, and the oversight arrangements need to be open, transparent, and timely - and above all they need pass what I used to call the ‘Express and Star test' - that is, if they were printed in the local paper, would it be an embarrassment?

Neither the Education Funding Agency (EFA) nor the regional schools commissioners (RSC) have covered themselves in glory on these issues. While local authorities have their problems, internal audit and action on malfeasance and corruption have been first class. As both deputy director and director I took direct action against senior school staff and governors who had crossed the line - and in every case the person concerned was removed from post, and I had the full backing of my council.

The latest failure of the academy system is the Academy Transformation Trust.

Cutting a long story short, Ian Cleland, the chief executive, and his managing director, were investigated by the Observer and Channel 4 Dispatches for excessive expenses claims and perks, and were suspended by the Trust chair, Stephen Tilsley. So far so good, though it shouldn't have taken a national newspaper and television programme to uncover the problem - the EFA and the RSC were clearly asleep at the wheel.

An investigation then ensued - again, entirely properly.

The outcome is that Ian Cleland was reinstated and his first action was to remove the Trust chair, with another trustee resigning shortly afterwards.

Ian Cleland's lawyer said that the changes were to ensure "the smooth running" of the chain, and that the RSC had confirmed that he was legally able to remove the Trust chair.

The first governance failure (both the Trust itself and the oversight) is in the failure to act until the pressure to do so became overwhelming. The second failure is the legal ability of the chief executive to remove the trustees who had challenged him.

Do you remember the old Advertising Standards Authority mantra? ‘Legal, decent, honest and truthful'?

What has happened at the Academy Transformation Trust, and the oversight by the RSC and the EFA may have been legal. But for the rest, I can't be sure, and I'm certain the RSC and EFA don't know.

The Academies Handbook says: "In this handbook there are frequent references to trustees. This is the same body of people as both the directors of the company and the ‘governors' of a single academy trust; these words are used interchangeably. They are the people responsible under the academy trust's articles of association for controlling its management and administration. They have responsibility for directing its affairs, and for ensuring that it is solvent, well-run, and delivering the trust's charitable outcomes for the benefit of the public."

It's clear to me that there has been a failure of governance and accountability, of openness and or transparency, and that "the benefit of the public" is not being properly delivered. If trustees can be sacked at the whim of the chief executive, there is something stinking in the whole system.