Bridge International Academies was created by two young American entrepreneurs to bring low-cost, for-profit standardized schooling to millions of children in Africa and Asia. It raised money from wealthy people like Bill Gates and the Chan Zuckerberg Initiative, also Pearson and the World Bank, but it faced many problems, including opposition from African teachers’ unions and sex abuse scandals.

Six years ago, veteran journalist Peg Tyre wrote about the ambitions of Bridge founders to create a company that might return as much as 20% on investment and eventually have a stock offering:

[Bridge] was founded in 2007 by [Shannon] May and her husband, Jay Kimmelman, along with a friend, Phil Frei. From early on, the founders’ plans for the world’s poor were audacious. ‘‘An aggressive start-up company that could figure out how to profitably deliver education at a high quality for less than $5 a month could radically disrupt the status quo in education for these 700 million children and ultimately create what could be a billion-dollar new global education company,’’ Kimmelman said in 2014. Just as titans in Silicon Valley were remaking communication and commerce, Bridge founders promised to revolutionize primary-school education. ‘‘It’s the Tesla of education companies,’’ says Whitney Tilson, a Bridge investor and hedge-fund manager in New York who helped found Teach for America and is a vocal supporter of charter schools.

The Bridge concept — low-cost private schools for the world’s poorest children — has galvanized many of the Western investors and Silicon Valley moguls who learn about the project. Bill Gates, the Omidyar Network, the Chan Zuckerberg Initiative and the World Bank have all invested in the company; Pearson, the multinational textbook-and-assessment company, has done so through a venture-capital fund. Tilson talked about the company to Bill Ackman, the hedge-fund manager of Pershing Square, which ultimately invested $5.8 million through its foundation. By early 2015, Bridge had secured more than $100 million, according to The Wall Street Journal.

Just a few months ago, The Intercept called Bridge the Uber of education.

Ryan Grim of The Intercept just wrote a troubling update to the evolving story. As Bridge recently sought new funding from the World Bank, the company faced a new World Bank investigation and sought to foil it.

Ryan Grim reported:

FOR SHANNON MAY and her husband Jay Kimmelman, the conference call scheduled with the World Bank on September 12, 2020, was make or break. It had been just over 10 years since the Harvard graduates had launched Bridge International Academies, a chain of for-profit schools that had exploded in Africa and South Asia. With the backing of Silicon Valley’s elite and the support of international financial institutions like the World Bank, the founders were now in negotiations to raise fresh capital that would allow them to move into several new countries.

Rapid expansion was essential to the company’s business model. Bridge had figured out a way to slash the biggest cost drivers of a school budget — teachers’ salaries and traditional school houses — but the business was a low-margin enterprise that couldn’t slow down. The company was aiming for 10 million pupils, and it wasn’t as unreachable as it sounded: Bridge had already taught more than 1 million kids, backed by the for-profit investment arms of some of the world’s most famous philanthropists, including Bill Gates and eBay and Intercept founder Pierre Omidyar. The Chan Zuckerberg Initiative provided Bridge with $10 million in seed funding; its previous round of financing, the so-called Series E, which closed in 2017.

Bridge was now raising its next round, Series F. May and Kimmelman had a lot to lose: The couple had relocated from Cambridge to Kenya, and had done well enough to helicopter to their vacation home on the coast.

Just days before the call, in early September, May and Kimmelman had gotten bad news. In 2016, there had been a dozen or more cases of serial sexual assault at a Bridge school in Kenya. Several years later, at another Bridge location, a child on school grounds had been fatally electrocuted by a dangling live wire, while another had been badly injured. May and Kimmelman were already aware of the tragedies. Indeed, the company had internally documented many more cases of sexual abuse, but they had not been reported to the World Bank and stayed out of the local press. Now, a World Bank investigation threatened to bring them to light.

In February 2020, an internal World Bank entity that independently reviews bank projects, called the Compliance Advisor Ombudsman, had sent an investigative team, led by veteran investigator Daniel Adler, to Nairobi to look into complaints filed by a local human rights organization about workers’ rights and health and safety issues at Bridge schools. The CAO team, while in Nairobi, learned of additional allegations from parents and community members, namely the serial assaults and the electrocution. Adler quickly filed a report recommending a deeper look and asked Bridge for more information.

Bridge spent several months gumming up the process, successfully negotiating a nondisclosure agreement with the World Bank that would make it difficult to publish in full any report that might be completed. The company also pressured the head of the CAO, Osvaldo Gratacós, to ease off. Gratacós was pushed out by the World Bank, but the effort ultimately backfired; before his tenure expired, he formally launched an investigation — known internally as a CAO compliance process — into the sex abuse allegations at Bridge in September 2020. May and Kimmelman were now meeting with the World Bank to discuss how to respond.

With the company actively soliciting Series F financing and close to securing a deal to expand in Rwanda, the timing couldn’t have been worse. So the group — which included William Sonneborn, the World Bank official who oversaw the investment in Bridge, and another World Bank staff member, Shannon Atkeson — hatched a plan to keep the allegations hidden.

With Gratacós already on his way out, the next step was to “neutralize Adler,” the CAO’s lead investigator. Bridge would file a complaint with a World Bank ethics office accusing Adler of violating CAO procedures and of impersonating a Bridge employee. It was right out of the Bridge playbook: The company had previously done the same to a Canadian graduate student writing a report on its schools in Uganda, going so far as to craft a bogus “Wanted” poster and place it in local newspapers. (A subsequent complaint Bridge filed with his university was dismissed.)

Next, Bridge would publish a consultant report favorably comparing its own record on student safety to that of Kenyan public schools — something to point to if the news leaked. The main objective, though, was to keep it quiet for as long as possible. The revelations would “spook investors” and undermine Bridge’s expansion plans in Rwanda. “Time matters,” as one person on the call put it. “Need to delay until Series F.”

There was only one problem: Someone on the call was taking notes.

Please open the link.