Alberta Education declared Tuesday it’s pulling the plug on a Calgary private school after a third-party probe found financial irregularities that included the top administrator’s use of a $ 93,000 luxury SUV.
Education Minister Jeff Johnson questionable “capital assets” and governance issues were behind the decision to close the International School of Excellence, a government-subsidized facility located in the city’s northeast near Whitehorn.
“It’s a little bit beyond poor bookkeeping,” Johnson told reporters, adding Canada Revenue Agency and police were also investigating.
Johnson said he was armed to take action following a forensic audit done by accounting firm KPMG that looked at transactions recorded over a four-year period starting in September 2009.
The review highlights a school-owned BMW X5 SUV that was purchased by top school administrator and founder, Jean Fevry. Investigators say Fevry’s claim he strictly used the vehicle for school purposes was “inconsistent” with others interviewed.
Other issues were raised around the transfer, mortgage and re-mortgage of two properties titled to the school that were collectively valued at more than a million dollars.
A related review concluded board oversight of senior management was “absent or ineffective” in a number of cases, and issued 19 recommendations.
“I’m compelled and pleased to be taking action because this is the right thing to do for the students,” Johnson said.
The school has been operating in a church basement since 2003 and has 170 registered students from kindergarten to Grade 12.
Duane Plantinga, head of the Association of Independent Schools and Colleges in Alberta, called the investigation and subsequent shutdown order “quite rare.”
“This is the first one of this magnitude that I’m aware of,” said Plantinga, referencing his 14 years of experience.
Fevry could not be reached for comment after the reports were released to media late Tuesday.
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