School founder owed 'more than $1 million'

as posted here

JOSEPH SAPIENZA
September 8, 2009 - 3:44PM
A man accused of stealing $355,000 in government funding from a WA school and siphoning the money to Pakistan has argued the money was just part of more than $1 million owed to him by the school.

Anwar Sayed, 50, was a director of Muslim Link Australia Limited, which oversaw the running of the Muslim Ladies' College on Bickley Road in Kenwick.

The school was founded and operated by Mr Sayed on land he owned.

On April 16, 2007, he instructed his younger brother and fellow company director Zubair Sayed, 33, to transfer $US300,000 ($355,000) out of the Muslim Link account into a bank account in Pakistan, to which Anwar Sayed had access.

Both men are on trial for acting dishonestly and stealing about $355,000 in public funding from the company. The prosecution claims the money, which was supposed to be used for the ongoing operation of the school, was being used to set up a sister school in Kabul, Afghanistan.

Today, Anwar Sayed's lawyer Mark Trowell, QC, told a Perth District Court jury his client denied stealing the money and acting dishonestly. He said Anwar Sayed was "legally entitled" to the funds because it was money owed to him by the school.

At the time of the transaction, Mr Trowell said Anwar Sayed was "owed much more" than $355,000, considering he had invested a total of $1.2 million in the school by cash and in the way of deferred salary and rent.

"The school started with nothing, except good will and hope," Mr Trowell said.

At one point, Anwar Sayed deposited $340,000 into the account to keep the non-profit school operational.

"The school was obliged to rely on the generosity of Anwar Sayed to survive," Mr Trowell added.

He said the school was acting in accordance with the conditions of the funds received from the Commonwealth and State governments.

The court was told Federal funding was available for "general recurrent expenditure" such as rental and salary, while State funding did not impose such conditions. The two separate avenues of public funding were not "one of the same" as the prosecution claimed, Mr Trowell said.

He added the school had acted in accordance with the terms of the grants because it was paying money for rent and remuneration for services to his client.

It was also claimed Anwar Sayed had the legal right to take the money and that he had a genuine belief that he was legally entitled to it.

Documents showing proper agreements for deferred rental and salary payments to Anwar Sayed would also be shown to the court, including an agreement between the school and Anwar Sayed for the school to pay his mortgage payments of at least $1900 per month.

"If it was not for him, the school would not be there," Mr Trowell said.

Zubair Sayed's defence lawyer Andrew Skerritt said his client did take steps to transfer the money overseas to a bank in Karachi, Pakistan, as he believed it was his brother's money and that he was entitled to it.

"He wasn't stealing any money, he was just sending it to his brother because it belonged to him," Mr Skerritt said.

The two men have admitted the overseas money transfer took place and the company received public funding for a period of time. They also admitted being directors of Muslim Link Australia Limited at the time.

The trial continues.


as posted here