Accountants examining the finances of collapsed Wakefield City Academies Trust have found “no evidence of financial wrongdoing”, a government minister has said.

WCAT announced in September that it would give up all 21 of its schools, saying it was unable to bring about the improvement they needed.

The academy trust was accused of “asset-stripping” its schools after it emerged that it had transferred money from some of its individual academies to its central accounts, and in November Wakefield Council passed a motion calling on the government to ensure “full restitution” of this money.

In addition, the council’s Labour leader, Peter Box, said he would refer the matter to the police, adding: “There are serious questions to be answered about the way that money has been dealt with and it would appear has not been given back.”

The transfer of the money was raised when the Commons Education Select Committee questioned academies minister Lord Agnew about WCAT in December.

In a follow-up letter, published today, he told committee chair Robert Halfon that the trust’s financial accounts had received an unqualified audit opinion, and added: “We have contracted a leading accountancy firm to provide further assurance to the department on the trust’s current financial position and support with an orderly closure.

“Within the scope of this work, they have seen no evidence of financial wrongdoing.”

‘No crimes recorded’

In his letter, Lord Agnew also reiterated that trusts are not allowed to retain any surplus at the point when they are dissolved.

Last week, West Yorkshire Police told Tes they were “continuing to review information passed to officers regarding this matter”.

A spokesperson added: “No crimes have been recorded at this stage and consultations are ongoing with relevant authorities.”

New sponsors have been confirmed for 19 of the 21 WCAT schools.

The two remaining schools, Balby Carr Community Academy and Mexborough Academy, have provisionally been earmarked for Astrea Academy Trust and Delta Academies Trust respectively.

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