The largest Muslim school in Australia has recovered $ 19 million in taxpayer funds, two years after it was discovered that it was obtained for profit.
New Education Minister Dan Tehan restored funds for the Malek Fahd Islamic School in southwest Sydney, a fortnight after being promoted by incoming Prime Minister Scott Morrison.
His ruling, which coincides with the Islamic New Year, is a great victory for the school, after which in March he lost a battle in the Federal Court to recover $ 19 million in funds from the Commonwealth.
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The largest Muslim school in Australia has recovered $ 19 million in taxpayer funds, two years after it was discovered that it was obtained for profit (Greenacre campus in the photo)
The new education minister, Dan Tehan, restored funds for the Islamic school Malek Fahd in southwest Sydney on the condition that he reviews his trade agreements.
Former Education Minister Simon Birmingham had cut school funds in 2016 after learning that the Australian Federation of Islamic Councils (AFIC) had overcharged the school's rent to make a profit.
The Administrative Court of Appeals confirmed the decision of his department at the end of 2016.
In March, Federal Court Judge Nye Perram ruled that Malek Fahd had not taken the proper steps to clean up his government.
The court agreed that the school, which operates three campuses in southwest and northwest Sydney, was run for profit in violation of education funding laws.
The judicial battle depended on the lease arrangements on the school's Greenacre campus, in southwestern Sydney.
Judge Perram concluded that Malek Fahd's property had been owned by AFIC, which improperly used inflated rents and other charges to earn money from the school.
The Department of Education, the Administrative Court of Appeals and the Federal Court found that the Malek Fahd School had paid an exaggerated rent to the Australian Federation of Islamic Councils.
On Monday, Tehan reinstated federal funds from the school on the condition that he demonstrated that he was independent of AFIC; it had "commercially sound" lease agreements and operated a separate bank account for AFIC.
"Malek Fahd Islamic School Limited has been granted approval to receive federal funds subject to the board meeting of numerous conditions, following a robust and rigorous evaluation process," it said in a statement.
"The Australian government will not tolerate the misuse of taxpayer dollars allocated to schools."
The president of the school board, Dr. John Bennett, praised the restitution of funds in a newsletter for parents.
The new education minister, Dan Tehan, restored funds for the Islamic school Malek Fahd on the condition that he demonstrate his independence from the Australian Federation of Islamic Councils.
"The Commonwealth's current decision gives us certainty and means that we can continue to deliver the high-quality education that he expects and that his children receive," he said.
"It is unfortunate that it took us so long to resolve it, but the community had to be sure that we had made all the necessary changes to restore proper governance and put our school in line with what is required of each Australian school that receives funds from the school. government. & # 39;
Daily Mail Australia contacted the school and AFIC separately to receive comments.
It was discovered that AFIC had diverted around $ 45 million from the school founded in 1989.
The graduates of the Malek Fahd school include the leader of the extremist Islamist group Hizb ut-Tahrir Australia, Uthman Badar, who was captured by the camera saying that the former Muslims deserved death.
The school told the Supreme Court of New South Wales last year that AFIC had collected funds from it for 15 years.
Malek Fahd had received $ 19 million a year from taxpayers until the Administrative Court of Appeals ruled in 2016 that the funds should be withheld for financial irregularities.
The graduates of the Malek Fahd school include the leaders of the extremist Islamist group Hizb ut-Tahrir Australia, Uthman Badar and Hamzah Qureshi.
Last year Daily Mail Australia captured Mr. Badar on camera telling a forum in the Bankstown library that former Muslims deserved death.