Grafton College, Dublin, which closed suddenly on 5 December 2018 owing 23 teachers one month’s pay, made losses of €507,000 in 2017 and had debts totalling almost €1 million, a creditors meeting has been told.
Although most of the approximately 470 students at Grafton had been found places in MEI member schools by early January 2019, a creditors’ meeting later in the month was told the company still owed €194,157 in wages and staff redundancy payments.
Bowing to increasing public pressure for teacher protection following the schools’ collapse, the Irish government has now appointed a mediator to explore a collective employment agreement citing the “completely unacceptable” employment practices at Grafton as a reason for the policy change (see page 10 for news analysis)
As well as unpaid wages, creditors were informed that Grafton College of Management Science Ltd., which operated the Dublin school, also owes an estimated €60,000 to agents in Brazil, and at least €30,000 payable to other agents and marketing companies.
A further €45,000 is owed to a Mongolian agent. According to broadcaster RTE, ten Mongolian students paid fees of €5,300 to the college in 2018 for courses scheduled to start this January. The students have since had visas refused or have visa applications still pending, the broadcaster claimed.
Grafton Director Saeed Rehman a British national resident in County Dublin, confirmed to RTE that the money had been spent, saying, “we were short of funds so we used it”. This is in breach of regulations requiring schools to keep fees in holding accounts and return fees after visa refusals. David O’Grady, CEO of schools association MEI, told RTE that, “people who would do something like this should have nothing to do with education”.
According to documents filed at Company Registration in Ireland, Grafton College of Management Sciences Ltd. was incorporated in Ireland in 2003 and is owned by a Uzma Saeed, who is resident in London. Saeed Rehman is listed as Director.
Grafton College of Management Sciences Ltd. was incorporated in the UK in 2004, and the company is now listed as dormant. A Mr Saeed Ur Rehman was Company Secretary until 2012, according to documents at Companies House, and was a shareholder until January 2018. Companies House documents also show the same Saeed Ur Rehamn as also a shareholder of Grafton College Ltd. London until January 2018, when he ceased to have significant control. Grafton College Ltd. also owned and operated a London college of that name.
In November 2017, a BBC documentary revealed that agents for Grafton College London were revealed to be involved in suspected student loan fraud. The BBC approached the owners, who denied any knowledge of the scam. The company was sold to new owners in 2018 and changed its name to Bridgestone College Ltd. at that time.
The London Gazette published a notice of a meeting for creditors of Bridgestone College in August 2018. Such notices are normally issued by official receivers following bankruptcy.
An application to have Bridgestone wound up and struck off the Companies House registry was suspended on December 5, 2018, following an objection received by the Registrar. At the time of going to press, action to strike off the company was still suspended.
