Paul Hannan, the former principle of Hadlow College has agreed never to work in the education sector in a deal with liquidators BDO which would see him face a £250,000 fine for breaching the ban.
The deal, thought to be the first of its kind, was reported by FE Week, which also revealed another confidential arrangement with former Hadlow deputy principal Mark Lumsden-Taylor. The two former leaders of the Hadlow Group resigned in 2019 after Hadlow, West Kent and Ashford colleges became the first in the country to enter ‘educational administration.’
According to reports, debts at Hadlow College had reached £40 million, while WKAC (the corporation managing West Kent and Ashford colleges), owed in excess of £100 million, leading to the Further Education Commissioner to launch an investigation into financial irregularities.
In 2022 administrators took over the group from the Insolvency Service (who decided to take no action against any officials after a three year investigation). In a recently published update, BDO revealed some of the details of the agreement reached with the two men.
In a filing, BDO said, “In accordance with our reports in the education administration, we investigated the conduct of certain relevant individuals of the corporation. These investigations have been concluded. The joint liquidators undertook detailed investigations for over three years and intimated claims against Mr Lumsdon-Taylor in a letter before action.
“[He] strenuously disputed all liability regarding the claims and without prejudice negotiations took place. A full and final settlement of the claims was reached on commercially acceptable grounds without any admission of specific liability or admission of any wrongdoing.”
Mr Hannan also “disputed liability regarding the claims.”
At the time of writing neither man had made any public comment. Hadlow College is now run by North Kent College.