When children’s health becomes a business

The following text is a summary of the information presented in the Swedish investigative current affairs programme Uppdrag granskning (the Swedish equivalent of the BBC’s Panorama), originally broadcast on 19 March 2014.

Introduction: A brand built on health, a report built on staff testimony

SVT’s Uppdrag granskning examines the operations of a private nursery chain, Hälsans förskola. The company, founded by Bijan Fahimi and Narges Moshiri, operated under the motto ”health, movement, and a healthy diet”. Meanwhile, internal documents and testimonies from staff in Nacka, Uppsala, and Stockholm reveal an extreme focus on cost-cutting, alongside an ambitious expansion plan (with a target of 50 nurseries in 5 years).

The Nacka Case: Staff testimony on the food crisis

According to statements from staff and the former head office manager, the nutritional situation at the Nacka nursery deviated from accepted standards at certain times. According to documented testimony, there were cases in which children received only ”crispbread and water” for breakfast. The severity of the crisis is also reflected in parents’ accounts; according to posts in a Facebook group, parents bought and paid for fruit and other essential groceries (such as cucumbers and kiwis) themselves.

Management policy: Expansion prioritised over equipment 

Eva, a former administrative manager within the organisation, testifies that attempts to purchase basic equipment (such as play equipment and balls) were met with resistance from the board. According to her account, management’s logic was that available capital should be used to open new nurseries. In another part of the report, Maria, one of the nursery’s cooks, states that she was ordered to buy the cheapest ingredients. She claims that management, in response to the difficulty toddlers had chewing hard bread, said they could soften the bread with their gums.

The food budget: A reality beyond expectations 

One of the most central parts of SVT’s report is the revelation of the exact food budget figures at the nurseries in Stockholm and Uppsala. According to internal emails and statements from Malin Hökeberg (the CEO at the time), the fixed daily budget for each child was 12 kronor. A crucial detail is that these 12 kronor were intended to cover the cost of breakfast, lunch, snacks, and fruit; furthermore, the cost of staff meals was also deducted from the same budget.

Economic analysis: 10 kronor for three meals 

The nursery’s cooks, including Emerson Araya and Jessica Malmberg, emphasise that once the staff’s share of the food budget was deducted, the actual amount per child fell to approximately 10 kronor (and in some cases as low as 9 kronor). Emerson explains in the report that when he attempted to prepare higher-quality food, he was questioned by management; this was because the cost per child had risen to 17 kronor, which, according to the company, was far above the fixed budget.

Profitability in the midst of a crisis 

At the same time as staff raised the alarm about hungry children and a lack of milk and fruit, the company’s financial statements showed a different picture. According to the financial documents examined in the report, Hälsans förskola reported a total combined profit of 8 million kronor (funded by taxpayers’ money) during 2011 and 2012. This stark contrast between ”accumulated profit” and ”the children’s plates” was the central point of the reporter’s questions to the owners.

The owner’s response: ”Miscalculation” or ”greed”?

Faced with these facts, Bijan Fahimi (the business owner) admits to certain shortcomings in the final interview, but attributes them to ”errors in calculation and leadership” rather than ”economic greed”. He claims they believed a budget of 12 kronor was reasonable, and that the decision to increase it to 17 kronor was only made after the media investigation had begun.