Former trustees of an international aid charity disqualified by Charity Commission
The Charity Commission has disqualified three former trustees of an international aid charity based in Bedfordshire as part of a two-year investigation by the regulator.
The statutory inquiry into Quba Trust, a charity set up to alleviate poverty, provide disaster relief and promote the Islamic faith, has found the charity was poorly managed and its now former trustees had a serious disregard for, or lack of understanding of, the importance of proper financial management and controls.
The Commission opened a statutory inquiry after routine monitoring by the regulator flagged serious concerns about the charity’s governance and financial management. This was of particular concern due to the charity’s international operations in Pakistan. The charity’s then trustees had also failed to act on regulatory advice and guidance issued by the Commission to make improvements in how the charity was run and ensure it met legal obligations.
The inquiry report sets out failings by the charity’s trustees across a number of areas which amount to misconduct and/or mismanagement:
For example, during its investigation, the Commission found the former trustees were unable to account for more than £250,000 that was transferred overseas with a further £500,000 lacking a satisfactory financial audit trail. This breached their legal duties and was in contravention of the governing document, which constitutes a breach of trust and is misconduct and/ or mismanagement in the administration of the charity.
Separately, while the charity was largely inactive and under investigation by the Commission it spent more than £36,000 on a consultant. The inquiry examined the rationale for this appointment and, using the Commission’s legal powers, sought evidence and responses from the former trustees. However, the former trustees failed to provide any justification for the decision, define the consultant’s role, or demonstrate any tangible outcomes from their work. The regulator concluded that the consultant’s appointment and remuneration were not in the charity’s best interests and amounted to misconduct and/or mismanagement.
Given the extent of the failings, the Commission determined that the misconduct and / or mismanagement committed by some of the now former trustees made them unfit to be a trustee or hold senior management positions in any charity. As a result, the Commission disqualified three trustees for periods ranging between five and ten years.
Since the Commission’s involvement, the current trustees have taken a number of steps to address the failures and weaknesses in the charity’s governance.
Joshua Farbridge, Head of Compliance Visits and Inspections for the Charity Commission said:
The full inquiry report can be found on gov.uk
Ends
Notes to Editor
Comments
Comments are currently closed.