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The rorts of Islam in Australia

AFIC used Malek Fahd Islamic School as a funding ‘milk cow’

Government goes missing again!

The country’s largest Islamic school was used as a “milking cow that never runs dry”, paying millions­ of dollars through interest-free loans and exorbitant, above-market-value rents to its controlling body, the umbrella organisation representing Muslims in Australia. The payments were canvassed in the Federal Court yesterday as the Sydney-based Malek Fahd Islamic School, which has more than 2400 students and 300 staff, launched a last-ditch bid to stay afloat.

Source: News Corp

The case threatens to engulf senior members of the Islamic community who were involved with the finances of both the school and AFIC.

Part of the school’s argument was that former directors of the school had breached their fiduciary duties “on a comprehensive and spectacular scale’’.

Ian Coleman SC, counsel for the school in yesterday’s proceedings, said there had been “a toxic combination of directors common to the board of AFIC and the school’’.

For some time before 2015, community leader Hafez Kassem was chairman of the school board and president of AFIC. He was sacked as AFIC president in March last year and six Islamic schools agreed to remove AFIC’s power over their finances.

The school, which now has a new board, launched an appeal in the Federal Court after the federal government cut almost $20 million in annual funding following revelations of its financial relationship with AFIC.

The school has three cam­puses, the first in Greenacre in Sydney’s southwest, which was leased from AFIC and allegedly used to fund the organisation.

“The Greenacre lease was treated by AFIC as a milking cow that never runs dry,” Mr Coleman said yesterday. “There was a series of spectacular rental increases — tenfold in one instance — that were made retrospective and prospective.”

The appeal followed a ruling by the Administrative Appeals Tribunal late last year backing the federal government’s decision to cut funding. The government has continued funding pending the outcome of the court actions but it would cease if the school’s appeal is unsuccessful. The school argues that since March last year no money has been paid to AFIC.

Mr Coleman told three judges in the appeal that the school faced closure if federal funding was not continued. “If the school fails in this litigation, in the financial situation it is in, the directors would have no practical alternative other than to put the school into liquidation,” he said.

While the school has ceased all payments to AFIC, the court heard it had continued to keep track of its lease payments in its accounts, a figure that has soared into the ­millions.

Richard Lancaster SC, acting for federal Education Minister Simon Birmingham, argued the school was still bound by its contracts to AFIC, and if funding were continued, the school would be obliged to pay its debts. “The rental obligation was discharged and replaced by a loan from AFIC to the school,” Mr Lancaster said. “It seems on the facts there was a ­notional payment of rent and then its replacement with debt.”

Since it was established in 1990, Malek Fahd’s former board lent more than $5m to AFIC, without interest, and at one stage paid its rent five years in advance.

When AFIC acquired its campus in Hoxton Park, in Sydney’s west, it asked Malek Fahd to pay the second property’s rent as well.

AFIC later sought a valuation for the Greenacre property that found the rent should have been vastly more, and demanded the school pay an additional sum of ­almost $3m. Between 2012 and 2015, Malek Fahd received more than $76m in commonwealth funding and stands to gain $19m should it be successful in its appeal.

The Federal Court bid is made more complicated by the other legal battles embroiling the school, AFIC, and AFIC’s current and former directors. A group of former executive members of the body, who were either banned or stepped down last year, allegedly changed the locks of its Sydney headquarters, declaring they had only been removed temporarily.

Keysar Trad, who was elected AFIC president last August but ­defeated at elections this month, has launched legal action in the NSW Supreme Court against Mr Kassem and several others.

Malek Fahd is also taking AFIC to the NSW Supreme Court seeking a repayment of funds, damages and the release from other obligations it holds. Both matters remain before the courts.

The financial affairs of six Islamic schools operated by AFIC, were investigated by the federal Education Department in 2015 after a string of senior staff members and principals were sacked, allegations of financial mismanagement and concerns over the delivery of the curriculum. As well as Malek Fahd, Islamic colleges in South Australia and the ACT had funding withdrawn.

Comments on this entry are closed.

  • TommyGun 19/05/2017, 5:30 am

    Looks like the Islamic dogs are fighting each other and, hopefully, bankruptcy for several of them is a possibility.
    The only downside appears to be if the School wins in court. Then the poor Aussie taxpayer has to foot he bill.
    And one may ask: “where does all this money paid to AFIC go? What is it used for?
    These people make up (apparently) 2.5% of the population and yet they have schools springing up like mushrooms everywhere and soaking up taxpayers money like a sponge??
    I smell a large, dead, stinking rat!

  • Angry 19/05/2017, 7:32 am

    This is an interesting article related to this topic.

    Sydney Sheik urges Muslims to invest in Islamic schools

    http://www.dailymail.co.uk/news/article-4498138/Sydney-Sheik-urges-Muslims-invest-Islamic-schools.html

    • Spinbuster 19/05/2017, 8:38 am

      This is further proof that they have absolutely no intention of assimilating.

      This will mark the times as the era of gullible shitheads who gave their country and lifestyle away without a bullet being fired.
      Sorta hard to get your head around when you step outside the square and look in from afar.
      I bit like putting your little patch of home turf into perspective when you zoom out on google earth.
      Madness.. bloody madness!

  • Honeybadger 19/05/2017, 8:29 am

    Still waiting for this islamic school to be given it’s final curtain call. Might be waiting a long time as they slither and slide with their appeals, whingeing and victimhood cries.

    • Lorraine 19/05/2017, 8:37 am

      yes poor me I am the victim. 2400 students can the Government let them down, ask the left……The left let the Muslims in, will the left take any blame..

  • Robert TG 19/05/2017, 9:30 am

    2400 students and 300 staff? That is one staff member for every eight students.
    Does anyone know the ratio of staff to students in public schools?

  • Albert 19/05/2017, 10:06 am

    Does anyone really believe that the government or the courts will put a brake on the money-grabbing liars who operate these schools that breed division and hate of the kaffir? Not going to happen folks.

  • Biking Voter 19/05/2017, 10:46 am

    Oh how most other schools would love to have the kind of funding that Malek Fahd receives. Malek Fahd had their funding reduced by 20 million, so what was their total funding package worth?

    Other schools in the education system would never in their wildest dreams get the sort of funding that could see that funding reduced by 20 million while still maintaining funding to the tune of millions more.

    Stop wasting taxpayers money on these islamists, let the untaxed halal scam pay for it all.

    • Joe Blogs 19/05/2017, 11:37 am

      The first thing they should do is change the school’s name to the Melvin Trumble Islamic School. Then there’s the Tomato Head School of Halal Scams, the Sheik Shady School of Feminist Studies, the Grand Mufti School of English, and the Keister Trad School of Family Welfare Studies.

  • Angry 19/05/2017, 12:14 pm

    How much of our school funding is diverted to Islamic groups? | Herald Sun Andrew Bolt Blog

    http://blogs.news.com.au/heraldsun/andrewbolt/index.php/heraldsun/comments/how_much_of_our_school_funding_is_diverted_to_islamic_groups/

  • Angry 19/05/2017, 12:15 pm
  • Angry 19/05/2017, 12:16 pm

    Islamic Council refuses to hand over Australia’s biggest Muslim school | Daily Mail Online

    http://www.dailymail.co.uk/news/article-4096642/Islamic-Council-refuses-hand-Australia-s-biggest-Muslim-school.html

  • Angry 19/05/2017, 12:17 pm

    Islam critic Ayaan Hirsi Ali says shut down Muslim schools | Daily Mail Online

    A prominent Islam critic says Australia should shut down Muslim schools. Somali-born writer Ayaan Hirsi Ali, who is touring Australia next month, said these schools were akin to child abuse.

    http://www.dailymail.co.uk/news/article-4357088/Islam-critic-Ayaan-Hirsi-Ali-says-shut-Muslim-schools.html

  • Angry 19/05/2017, 12:18 pm

    Islamic School of Canberra loses $1m in government funding | Daily Mail Online

    http://www.dailymail.co.uk/news/article-4431274/Islamic-School-Canberra-loses-government-funding.html