Ex-finance director denies creating invoices at Bradford free school fraud trial

Daud Khan, who was the financial director for the Kings Science Academy when it opened in September 2011 said such invoices were all supplied to him and would not have been sent on without the approval of the principal Sajid Hussain Raza. Khan, Raza and his sister Shabana Hussain are all standing trial accused of diverting money intended for the school with false documents created to cover their tracks.

Raza, 43 of Spring Gardens Road, Heaton, Bradford denies four counts of fraud, three counts of false accounting and two of obtaining money transfer by deception. Hussain, 40 of Wilmer Road, Heaton, Bradford, denies one charge of fraud and three of false accounting and Khan, 44, of Thornhill Place, Thornbury, denies two counts of fraud and three of false accounting.

Khan told the jury said he first became involved with the Academy project through meeting Raza’s father at a charity event and then his brother who became a trustee of the academy and finally Raza himself. “Raza explained what he wanted to achieve and was looking to recruit people on to the Trust. He wanted professional people and he asked if I was interested and I was.”

He allowed his name to be used when the business application was put together but did not have anything to do with the budget for the business grant.

He told the jury he was on a panel in March 20 11 to consider Raza’s appointment as Principal which was “like a formality we had to go through.”

At that meeting they were told the next budget had not yet been approved by a DfE consultant which was “news to us.” He had assumed that it was all approved.

He began as the official financial director from the beginning of May. He said he had a meeting with Raza, the lead in grant had been agreed with the DfE and he had a document about the salaries to be paid.

Invoices for expenses and other items would be given to him by Raza or left in his in tray.

Khan told the jury at that stage Raza told him that he did not need to submit invoices to the DfE so did not do so when he put in the April/May document to receive money from the grant.

But he was then informed by the Department within a couple of days that the invoices were needed. He said Raza was holding regular meetings with the heads of department who had already been appointed and he asked him to tell them he needed their invoices to cover their claims if they had not already been submitted.

“Did you have a record of meetings attended or activities undertaken by the heads of department,” asked his defence counsel Nick Worsley.

“No I didn’t have that information,” said Khan.

“Did you create invoices to support claims made by heads of department to justify drawing down grant money,” asked Mr Worsley.

“No, no I wouldn’t do such a thing,” he replied.

He said he prepared a schedule of payments from the invoices and would submit it to Raza for his approval, sometimes it was returned with hand-written amendments. He would then submit the final document to the Department.

He told the jury he kept a record of the payments in a file but the one covering June, July and August went missing in the move from the offices at Cumberland House to the Coral Academy when the school opened that September.

He said the role of financial director was not what he expected. “It was just a title, I did not get to do the role I expected.” He said he found himself doing administration, book-keeping and even had to mark aptitude tests for about 200 pupils.

Khan said Raza told him “everybody is doing bits and bobs” because they needed the work done and because he believed in the project he went along with it.

He claimed Raza had to approve everything. At one stage a list of potential auditors was drawn up after he had visited them but he said Raza picked one that was not even on that list who was likely to be more expensive.

“It was a complete waste of my time and a pointless exercise. He should at least have consulted me.”

He said he was never given a contract at the school and chased Raza for one without success. He prepared a service level agreement for himself but it was never signed and returned to him.

Khan said he did that because he was told his hours were going to be cut to three days a week but stayed on because “I was committed to Kings and wanted to make a difference. I did not realise it would be so hard working with Sajid.”

He told the jury when he paid £7397.50 to Raza in June 2011 for his March salary after the grant came through he had made a mistake adding his pension and national insurance on top of his basic salary.

At that stage the school had no PAYE or VAT number and he should have gone back later in the year when they did and sorted it out and reconciled subsequent months until the school opened but had not done so.

“Do you accept you could have put it into a different account or set it aside to pay later,” said Mr Worsley.

“I accept that, I didn’t,” said Khan.

The trial continues.