Watchdog to investigate private colleges' potential misuse of millions
The UK public spending watchdog has been asked to investigate potential misuse of public funds in the booming higher education sector after a Guardian investigation revealed that one college which had recently tripled in size was running classes with few students.
The chair of the public accounts committee, Margaret Hodge, said on Thursday she had asked the National Audit Office to draw up a report following what she said were shocking and serious allegations about the potential misuse of millions of pounds of public money.
She said there had been an "astonishing growth" in the private-college sector, which has increased from the use of £40m of public funds in 2010 to £900m this year after the higher education minister David Willetts brought in reforms which allowed the sector access to the student loans book.
Tens of thousands of students and about two dozen new private colleges have been major beneficiaries of the funding changes.
http://www.theguardian.com/education/2014/may/22/watchdog-investigate-private-colleges-potential-misuse-millions
