A debt-ridden college at the centre of a £2 million fraud investigation is to make more than 100 redundancies and relocate in a bid to stave off closure. Sandwell College, which is £12 million in debt, made the shock announcement yesterday as it outlined a rescue package which includes shutting down its four campuses and replacing them with a single base. A restructuring programme will also see employment contracts change and staff development time slashed. Union representatives last night vowed to fight the move which is being proposed to get the college out of financial crisis. Last year The Birmingham Post revealed Sandwell College was being investigated by police amid allegations of fraudulent claims made by learning providers handling courses on its behalf. The alleged fraud is believed to have siphoned £2 million from the institutions budget, contributing to its current financial hardship. The investigation by West Midlands Police is continuing. Principal Val Bailey, who was drafted in last year to turn round the ailing centre in one of the countrys most deprived wards, said: While todays proposed job losses are not good news, we are confident that our staff appreciate the changes taking place will secure the future of the college. Employees, however, were left stunned by yesterday s announcement, said union representatives. Una OBrien, regional support officer for the National Association of Teachers in Further and Higher Education, said: We were informed this morning. It is now our intention to hold consultation with our members. We will fight to prevent any compulsory redundancies of our members and any attack on their terms and conditions. A letter issued to its 755 staff yesterday outlined the enormity of the crisis facing the college which last year was put into the serious concerns category by the Learning and Skills Council. The letter says: The college already has a £12 million deficit accrued over the last two financial years. Senior managers at the college met its board of governors to approve the plans to close campuses in Oldbury, West Bromwich, Wednesbury and Smethwick. The new centre, due to open in 2007, will cost £40 million and be located within the £ 350 million new West Bromwich development plan. Funding will come from selling off the old premises, existing private sector training providers and the LSC, which holds responsibility for adult education. David Way, executive director of the Black Country LSC, said the plans were vital to secure the future of the college. It has been slowly declining its core business over the last five to ten years, he said. Suddenly the college has found it has to re-address its cost base and downsize to ensure the business it now does matches the cost base it has got. Coun Ian Jones (Lab Tipton Green), Sandwell Councils cabinet member for education and lifelong learning, said: This college has a pivotal part to play in our 14 to 19 strategy for the whole of Sandwell. A three-month period will now take place before redundancies are made. | 
