Three are arrested amid claims of fraud at one of the Government's flagship academy schools

 

Police investigating allegations of fraud at one of the Government’s flagship academy schools have arrested three people.

Among those understood to have been held in a series of early morning raids by detectives is Eric Baker, founding principal of Glendene Arts Academy in Easington, Co Durham, and his wife.

Mr Baker has been on sick leave from the former community school for children with special needs, since an investigation was launched into allegations of serious financial mismanagement in the wake of whistleblower claims last year.

A Department for Education report published in February and revealed in The Independent highlighted concerns over the use of academy resources and payment of the salaries and expenses of staff used by a private company.

The chair of governors resigned in July following the claims by members of staff.

Police said a 57-year-old man and his wife, aged 56, were arrested at an address if Whitley Bay, North Tyneside at 7am this morning.

A 41-year-old man was arrested at premises in Darlington, and asearch at a property in the Kenton area of Newcastle was also carried out. Police said they expected to make a fourth arrest in connection with the inquiry.

All were arrested on suspicion of conspiracy to commit fraud, Co Durham police said in a statement.

Glendene Arts Academy caters for pupils aged two to 19, who all have a statement of special educational need. 

It was previously managed by Durham County Council, receiving academy status in September 2012 and was officially opened by the Duke of Edinburgh in April last year.

Rob Wright, chairman of the academy who was one of the whistle-blowers said: “The trustees and I are keen to assure parents and the local community that we have a strong interim leadership team, excellent teaching and excellent provision for vulnerable and special children - as well as robust financial systems.”

A new acting principal and a deputy were appointed in November. The EFA investigation revealed that a private company financed by the school was set up when it was still maintained by the local authority.

It was meant to help in fundraising and training, as well as providing an annual dividend, although the report concluded the arrangement resulted in the loss of £162,000 “that should have been used for the benefit of academy pupils.”

The Glendene investigation comes in the wake of another police inquiry into a free school, which led to the arrest and bailing of its founder, the principal of the Kings Science Academy in West Yorkshire, one of the first free schools to be opened, and previously visited by Prime Minister David Cameron. Last year one of the biggest academy chains, E-ACT, was criticised over its spending.

Start your day with The Independent, sign up for daily news emails
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm tomorrow
Arts and Entertainment
Mark Wright and Bianca Miller in the final of The Apprentice
tvMark Wright and Bianca Miller fight for Lord Sugar's investment
Arts and Entertainment
X Factor winner Ben Haenow has scored his first Christmas number one
music
Arts and Entertainment
James May, Jeremy Clarkson and Richard Hammond in the Top Gear Patagonia Special
tv
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
File: James Woods attends the 52nd New York Film Festival at Walter Reade Theater on September 27, 2014
peopleActor was tweeting in wake of NYPD police shooting
News
Claudia Winkleman and co-host Tess Daly at the Strictly Come Dancing final
people
News
i100
Extras
indybest
News
peopleLiam Williams posted photo of himself dressed as Wilfried Bony
Sport
Martin Skrtel heads in the dramatic equaliser
SPORTLiverpool vs Arsenal match report: Bandaged Martin Skrtel heads home in the 97th-minute
Arts and Entertainment
The Apprentice finalists Mark Wright and Bianca Miller
tvBut who should win The Apprentice?
News
The monkey made several attempts to revive his friend before he regained consciousness
video
Extras
indybest
News
Elton John and David Furnish will marry on 21 December 2014
peopleSinger posts pictures of nuptials throughout the day
Life and Style
A still from the 1939 film version of Margaret Mitchell's 'Gone with the Wind'
life
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Day In a Page

The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'
Marian Keyes: The author on her pre-approved Christmas, true love's parking implications and living in the moment

Marian Keyes

The author on her pre-approved Christmas, true love's parking implications and living in the moment
Bill Granger recipes: Our chef creates an Italian-inspired fish feast for Christmas Eve

Bill Granger's Christmas Eve fish feast

Bill's Italian friends introduced him to the Roman Catholic custom of a lavish fish supper on Christmas Eve. Here, he gives the tradition his own spin…
Liverpool vs Arsenal: Brendan Rodgers is fighting for his reputation

Rodgers fights for his reputation

Liverpool manager tries to stay on his feet despite waves of criticism
Amir Khan: 'The Taliban can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'

Amir Khan attacks the Taliban

'They can threaten me but I must speak out... innocent kids, killed over nothing. It’s sick in the mind'
Michael Calvin: Sepp Blatter is my man of the year in sport. Bring on 2015, quick

Michael Calvin's Last Word

Sepp Blatter is my man of the year in sport. Bring on 2015, quick