A government department has been ordered to release more information about its decision to award a £2.2m grant to King William’s College - or provide another reason why it should not.
Following an investigation, the Information Commissioner has ruled that the Department for Enterprise had not been justified in refusing to release documents requested under Freedom of Information.
It was announced in April last year that King William’s College and The Buchan School had secured a £2,256,395 grant under the DfE’s financial assistance scheme.
The grant, to be paid back within five years, with interest calculated at 1% above base rate from year three, was to support the project to relocate the Buchan School onto the main King William’s College campus.
It was a decision that prompted criticism in the House of Keys, with backbencher Julie Edge, saying she was ‘absolutely shocked’ that £2.2m had been awarded to a private education facility.
In July the Examiner revealed that an independent auditor’s report had raised concerns over KWC’s financial position. It concluded that ‘material uncertainties’ may cast ‘significant doubt’ on the group and parent company’s ability to continue as a going concern.
An FoI request submitted last May asked for details of due diligence checks carried out and evidence of scrutiny of monthly budget and cash flow analysis, directors’ reports and finance statements.
But the DfE refused to provide any of the requested information, stating it had been provided in confidence.
The applicant made a complaint to the Information Commissioner’s Office which carried out a review.
Subsequently, the DfE provided the Office with the documents that had been withheld, which included 54 emails and 141 documents.
A review of the documents showed that while some information was likely provided in confidence, much of it did not qualify to be covered by a blanket exemption.
Upholding the complaint, Information Commssioner Dr Alexandra Delaney-Bhattacharya found the DfE had applied a blanket absolute exemption without evidencing assessment of individual documents.
In her decision notice, she gave the department 30 days to either disclose the information requested or provide the applicant with a further refusal notice.
College principal Damian Henderson admitted when the project was first unveiled that the college’s financial position was ‘delicate’.
Castletown resident David Watts submitted a petition on Tynwald Day last year calling for a select committee investigation into the circumstances that led to the offer of the £2,256,395 government loan to the independent school. His petition was ruled in order.
The independent auditor’s report highlighted a £6.7m negative movement in funds and liabilities that exceed assets by more than £2m.