OSCR to investigate collapse of One Plus

Fundraising | Gemma Ware | 3 Apr 2008

The collapse of Scottish childcare charity One Plus last month is to be investigated by the Office of the Scottish Charities Regulator.

One Plus, which provided training and childcare support to lone parents across Scotland, went into liquidation at the end of January after severe financial difficulties meant it could no longer operate, resulting in the loss of over 600 jobs.

Jane Ryder, chief executive of OSCR, said that the regulator would meet with One Plus’s liquidators, KPMG, to find out more about the charity’s collapse. “We expect to draw out lessons for all charities who are providing important national and local services, whatever their size.” KPMG is conducting its own investigation into why the charity became insolvent and the likely outcome for its creditors.

It has also emerged that One Plus had approached the Big Lottery Fund with outline proposals for two projects totalling £1m, but after two initial meetings in November and December last year, decided to withdraw the application.

In a statement the Big Lottery Fund said: “While managing a portfolio of grants we became concerned the speed of the organisation’s expansion might compromise its financial health. Over the last year we have been working with them to address this. We wanted to see greater strategic focus before supporting new activity.”

One Plus had also approached the Scottish Executive for an emergency £2m refinancing package, but was turned down because its proposal “just did not stand up”. Des McNulty, deputy communities minister, laid the blame with the charity’s management, which he said had been in a state of denial.

Glasgow City Council, one of One Plus’s biggest customers, has been working to safeguard the childcare provision services previously operated by One Plus.

A spokeswoman for the council said that the “vast majority” of the services had been covered by other voluntary and private organisations. Some of these voluntary organisations have received short term funding to cope with providing the extra services. The council had already provided more than £700,000 of emergency support to One Plus before the charity went into liquidation.

Who's Who: Gemma Ware

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