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Tribunal overturns Commission judgement for the first time

Finance | Gareth Jones | 14 Oct 2009

The First-tier Tribunal (Charity) has overturned the Charity Commission’s decision to remove Nagendram Seevaratnam from his trustee position at the South London-based temple Sivayogam.

In its second case, the Tribunal (presided over by Alison McKenna, pictured) found that none of the Commission’s seven grounds for dismissing Seevaratnam were sufficient to justify the decision.

The Commission had claimed that Seevaratnam had not done enough to disassociate himself from rumours that he was a supporter of the Tamil Tigers in Sri Lanka, but the Tribunal found that there was insufficient evidence that these rumours existed or were taken seriously.

With regard to the Commission’s concerns about the charity’s procedures for selecting and monitoring funding recipients in Sri Lanka, the Tribunal said it was unclear whether the Commission’s requirements were a legal duty of the trustees or merely best practice.

It added that it was “most concerned” that significant evidence submitted by Seevaratnam on this issue had not even been translated and as a result was not considered.

The Tribunal also found that while there had been misconduct in the acquisition of a temple in Wembley, North West London, and in pursuing various litigation cases, these were not sufficient to justify Seevaratnam’s removal as a trustee.

And while the Tribunal said it could understand the Commission’s concerns over the charity’s financial model, which allowed for its dependence on short-term, interest-free loans, this could have been resolved at an earlier stage via discussions with trustees and guidance.

Case delayed

Seevaratnam’s appeal was first posted in May 2008 but was repeatedly delayed as he struggled to find pro bono legal representation.

Seevaratnam was suspended by the Commission in 2007, with the removal made permanent the following year.

The parties now have 14 days to make representations on whether the Tribunal should award costs against the Commission.

A spokesman for the Charity Commission said it would publish an inquiry report in due course.

“As the public would expect, the Charity Commission takes concerns about abuse and mismanagement of charities extremely seriously, particularly concerning allegations of links with terrorist organisations and financial mismanagement.

“Once we have had the opportunity to consider the judgement in detail we will be in a position to give a fuller response.”

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