A second inquiry has been launched into the trust running one of the UK’s worst Islamic faith schools after it admitted pupils despite being banned from doing so.
The Rabia Girls’ and Boys’ School in Luton, near London, became the first registered independent school to be prosecuted by the government in 2020 after years of failings and is the only school to be classed as ‘inadequate’ in four consecutive inspections.
Now the UK’s Charity Commission has launched a second inquiry into the Rabia Educational Trust, which runs the school, for breaking rules imposed by the Department of Education (DoE).
A landmark prosecution on behalf of the DoE earlier this year saw magistrates fine Rabia £8,000 and the trust’s chairman Zafar Iqbal Khan £4,000 for breaching operating conditions.
Ofsted inspectors found that the school was admitting new pupils even though it was forbidden from doing so, due to successive failings in children’s welfare.
The Commission has now opened a new inquiry into the charity, investigating failure to comply with regulatory guidance.
A previous investigation from 2016 found Rabia guilty of misconduct, and trustees were issued with a legal order requiring them to follow the requirements of the government’s educational regulator Ofsted.
The Commission said it “has since kept the charity under close review and provided further regulatory advice and guidance”.
“Whilst some progress has been made, the trustees have persistently failed in the requirement to meet the Independent Schools Standards,” it said.
"In May, the charity and its chair were convicted for breaching operating conditions imposed by the Secretary of State for Education. Ofsted inspectors had found evidence that the school was admitting new pupils despite being prohibited from doing so due to successive safeguarding and welfare failings.
“As a result of this, and the failure to comply with regulatory advice and guidance, the Commission has opened a new inquiry into the charity.”
The inquiry is set to examine the trustees’ compliance with their legal duties around the administration, governance and management of the charity.
The school, which charges annual fees ranging from £1,950 to £2,300, has remained open through the court case and inquiry.
Rabia has been rated ‘inadequate’ by school inspectors since 2014, having previously held only a ‘satisfactory’ rating.
Last year it was one of seven private schools banned from accepting new pupils for “persistently” failing to meet independent school standards.
Inspectors discovered in September 2019 that it was still admitting pupils.
Earlier this year, Ofsted’s chief inspector Amanda Spielman labelled the conviction against the Trust as “unprecedented”.
“If schools have a restriction imposed on them because of their repeated failure to meet basic standards, they must comply with it. If not, they are liable to prosecution and significant financial penalties,” she said.
“This unprecedented conviction sends out a strong message.”
Under enforcement action, the DoE has powers to forbid schools from taking on new pupils, close a building and even order the full closure of a school.
The biog
Year of birth: 1988
Place of birth: Baghdad
Education: PhD student and co-researcher at Greifswald University, Germany
Hobbies: Ping Pong, swimming, reading
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
UAE currency: the story behind the money in your pockets
the pledge
I pledge to uphold the duty of tolerance
I pledge to take a first stand against hate and injustice
I pledge to respect and accept people whose abilities, beliefs and culture are different from my own
I pledge to wish for others what I wish for myself
I pledge to live in harmony with my community
I pledge to always be open to dialogue and forgiveness
I pledge to do my part to create peace for all
I pledge to exercise benevolence and choose kindness in all my dealings with my community
I pledge to always stand up for these values: Zayed's values for tolerance and human fraternity
