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The Auditor-General is to conduct an inquiry into possible conflicts of interest surrounding Cambridge High School and Cambridge International College.
Alison Annan, who was re-instated as principal at the school last week, is also the foundation principal of the college.
The inquiry will investigate the management of the board of trustees of Cambridge High School, after Education Minister Trevor Mallard asked whether the school's board funded overseas travel which may have benefited the private college.
Mrs Annan left the school amid controversy on August 13 after criticism of school management techniques and claims senior staff had bullied other staff. She was re-instated as principal in name and given her salary back by the Employment Relations Authority.
The inquiry will examine communications between the two institutions over the education of overseas students, what high school resources were involved, and any related issues of accountability and conflict of interest, Auditor-General Kevin Brady said in a statement.
Mr Mallard asked the Auditor-General to investigate whether the Annans' overseas travel, which benefited the international college, had been paid for by the Cambridge High School board of trustees.
Mrs Annan has said Cambridge High School and Cambridge International College operated separately and there was no conflict of interest.
She declined to comment on the investigation and referred inquiries to her lawyer Nikki Rice, who said the Auditor-General had been making inquiries into the relationship between the private college and the high school since the start of the 2002 financial year.
"Mrs Annan has always co-operated fully and provided the office with any information required," Ms Rice said. "She intends to continue to co-operate fully with the office.
- NZPA
Herald Feature: Education
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Auditor-General to investigate Cambridge High
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