Warning as schools are left with huge debts in IT scam Some heads were told the equipment was free and had been financed by corporate sponsorship deals. In a programme to be aired on Monday evening, it was claimed that the companies folded without securing enough sponsorship - leaving schools themselves liable. Liz Steel was forced to quit as head of Glemsford Primary School, Suffolk, when it emerged her school owed more than £500,000 for 125 laptops "I was told [by governors] that I had placed the school in an unacceptable financial risk and I had to go," she said. In many cases, debts were much higher than the overall cost of the equipment because it had been leased to schools at inflated prices. The BBC claimed that Gloucester Primary School, south London, leased laptops which should have cost £650 but the cost rose to £4,000 each. The school's total losses came to £1.9m. It emerged that Katesgrove School in Reading signed a deal for 330 laptops. More than 100 were never delivered and the school was left owing £1m, prompting the head's resignation. St Joseph's Catholic School in Slough was landed with debts of £1.4m and was almost forced to close until neighbouring schools stepped in provides funds from their own budgets. The head teacher and other members of staff have been suspended. Margaret Hodge, chairwoman of the cross-party Commons Public Accounts Committee, said: "The state is being ripped off by private companies trying to make a quick buck at the expense of quality teaching for our kids. In the old days the local authority would have intervened... But in the new world with academies and free schools, Michael Gove [the Education Secretary] himself will have to take responsibility if a school goes bust. Panorama: Reading, Writing and Rip-Offs will be shown on Monday, September 24, at 8.30pm on BBC1.