Under-fire Perry Beeches Academy Trust boss quits

The head of the troubled Perry Beeches chain of academies has quit in the wake of a damning financial report.

Liam Nolan, who chaired Perry Beeches Academy Trust, said he is stepping down to allow the 'necessary changes required to move the trust forward'.

He had previously resigned as chief executive.

This came following a report which found financial mismanagement and weaknesses in governance.

Mr Nolan had reportedly been on sick leave since Easter.

It has been reported that one trust staff member estimated its debts as £1.8 million and rising by 'tens of thousands of pounds' a month.

It also reported that plans for two new free schools – Perry Beeches VI and Perry Beeches primary school, which the trust had been granted approval to open by the DfE – had now been 'paused'.

The Department for Education said interim governance arrangements to ensure the schools' management had been put in place.

The existing governing body is reported to be stepping down.

The academy and free school trust, which has been praised by PM David Cameron, as well as current Education Secretary Nicky Morgan and her predecessor Michael Gove, runs five schools and looks after 2,400 pupils. The announcement comes in the wake of a string of revelations concerning the chain's finances.

In March it emerged that five academies and free schools run by the Trust were to be handed over to new managers.

An investigation found Mr Nolan was paid an extra £160,000 over two years, on top of his £120,000 salary, via education company Nexus Schools Ltd.

It supplied services to the trust and also paid money to a business of which Mr Nolan was the sole director.

He insisted there was no conflict of interest after an inquiry revealed he made a presentation to the trust's finance committee on behalf of Nexus in February 2014.

Earlier this year the academy chain was told to pay back £118,000 in government funding. The trust claimed around £2.8m from the Education Funding Agency for free school meals.

But it only kept limited records of its entitlements.

The DfE said in a statement: "Our priority is ensuring the education of pupils is not disrupted.

"Perry Beeches Academy Trust (PBAT) has already put in place interim governance arrangements to ensure the ongoing leadership and management of the schools are not affected.

"The Regional Schools Commissioner, Pank Patel, is working with the trust to secure future, permanent, governance arrangements.

"It would be inappropriate to discuss matters regarding the future of PBAT and its schools at this stage."