Headteacher resigns over ‘nepotism’ of £1.6m bonuses

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Sir Alan Davies, who was knighted for services to education, quit before he could be sacked over the culture of nepotism and greed at Copland Community School in Wembley.

His deputy Richard Evans was sacked for gross misconduct while the school's human resources manager, Michelle Bishop, has stood down. All three could face a police investigation as the school considers how to recover at least £1,565,700 in bonuses and other payments.

While senior staff and Sir Alan's caretaker son received extra money, pupils were taught in temporary huts and classrooms crumbling through lack of investment. Sir Alan and Dr Evans hosted black-tie dinners in the Commons and received visits from four prime ministers, one US president, Nelson Mandela and guest speakers including Dame Kelly Holmes.

When the bonus payments first came to light, Sir Alan claimed: "I am worth it for all the extra responsibility I have taken." He was suspended in May pending an investigation and had been due to appear before the school's disciplinary panel this week. But he chose to resign rather than face the panel.

Sir Alan is believed to have taken home more than £600,000 in unjustified payments on top of his £103,000 salary. As a foundation school, Copland had control over its own budgets and assets. The school's governors, who signed off the payments, were sacked in June and replaced with an interim executive board.

A statement from the board said further legal action against Sir Alan, Dr Evans and Ms Bishop, among others, could follow. "It is not possible to take disciplinary action leading to dismissal against staff once they have resigned," the board said. Dr Evans, who did not attend the hearing, has the right to appeal his sacking.

The suspended bursar Columbus Udokoro is due to appear before a disciplinary panel next month.