MPs today demand tougher regulation of academy schools to prevent a repeat of the Kings Science Academy scandal in Bradford.

The state schools – which are independent of local councils – are paying large sums for services provided by members of their trust boards, the education committee finds.

But this creates “conflicts of interest” which is leading to “questionable practices” being signed off at some academies, it warns.

Now new Education Secretary Nicky Morgan will be questioned about the “loopholes” in academy regulation when she appears before the committee next month.

Bradford East MP David Ward, said the problem went to the heart of the controversy over Kings Science Academy and confusion over its governors.

The school’s site is owned by a firm run by Alan Lewis, its patron and a Tory party vice chairman, which will receive £6m in rent over the course of a 20 year contract.

The Liberal Democrat MP has repeatedly condemned the Government for refusing to confirm that Mr Lewis was chairman of governors at Kings Science Academy – as he was originally listed.

Mr Ward said: “Trying to get information about it – even at this late stage – is like trying to get blood out of a stone.

“This is public money we are talking about, but we can’t get information about the arrangements that started the school. The attitude seems to be that it is all water under the bridge.

“You can’t expand academies at the rate that’s been achieved, because you can’t put in the governance and rigour that’s required.”

Today’s report, entitled ‘Conflicts of interest in academy sponsorship arrangements’, makes direct reference to Kings Science Academy, which was hit by a fraud scandal.

It reads: “Several interviewees argued that neither the EFA [Education Funding Agency] nor Ofsted is fit for purpose with respect to guarding against conflicts of interest.

“At best an auditor might detect issues after the event when the aim should be to have preventative systems. This relies too much on whistleblowers at present, as at the Kings Science Academy in Bradford.”

The report says the vast majority of academy trusts are staffed by “honourable people working hard to address educational under-performance, often in challenging circumstances”.

But it raised concern over sponsors providing services for school improvement, or back office support, can charge if they are doing the work "at cost" and not for profit.

One anonymous interviewee told of an academy “where the head teacher had spent £50,000 on a one-day training course run by their friend”, a decision which was not run past the governors.