Governors from some of the boroughs high schools have expressed grave concerns over the way Merton Council is managing the schools reorganisation and private finance initiative (PFI) project, the Guardian has learned.

Sources claim the LEA has been using flawed estimates on costs from the outset of the scheme three years ago with the authority at this late stage still unsure about exactly what the schools need.

This allegation is flatly denied by Merton Council, which says it is confident the project is moving forward and will be a big success.

All six of the boroughs high schools are being enlarged in line with Mertons change from a three to a two-tier educational system, planned for completion in September 2002.

The necessary building work to provide the extra classrooms and take on the 25-year maintenance project is planned to be carried out by Mertons preferred bidder, the private consortium Newschools, with the contract to be signed early next year.

In letters leaked to this newspaper, one school governor criticised the LEA for having little idea of where the project is at the moment and bemoans the lack of information provided on the preferred bidder, Newschools.

I am most concerned the LEA has little idea of where the project is in relation to the programme, stated one governor.

A second wanted assurances that entering into the PFI project would actually benefit the school, and also voiced uncertainty that the funding would actually cover the required repairs and maintenance.

The LEA has denied it is unaware of the needs of the schools, claiming the difficulty is trying to achieve a balance of equality in the schools list of wants.

Josephine Mahaffey, head of schools reorganisation, said that the reorganisation project is huge, with the PFI being only one part of it.

She said: There are many people who will come into contact with the project in some way and therefore there will be many points of view about how it is progressing.

October 24, 2001 16:00