Slater insisted the government is cracking down on related party transactions in academy trusts.
Using 2016/17 accounts, he said the DfE investigated 108 cases of related party transactions and found 59 were “wanting”. These questionable transactions amounted to £7 million which Slater said was only about 0.03 per cent of the overall academies budget– but Ian Mearns interjected that it was “more than was taken in the Great Train Robbery”.
From April, trusts will have to inform the DfE about related party transactions in advance and get government approval for any that are above £20,000. Slater said the new system would be “the most rigorous regime anywhere in the world”.
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