Commission opens investigation into charity after concerns about trustee lecture

03 Feb 2017 News

Fergus Burnett

The Charity Commission has opened an investigation and issued an order freezing a charity's bank account after concerns about a lecture given by one of its trustees. 

The regualtor has issued an order to restrict all transactions from The Suyuti Institute’s bank account after concerns of significant financial risk, and of conflicts of interest.

Concerns were first raised with the regulator about a lecture given by a trustee of the charity. And whether the “content of that speech was appropriate and furthered the charity’s purposes”. The commission said it could not comment any further on the specific concerns raised about the lecture.

As a result of these concerns the regulator met with the trustees and undertook a books and records inspection at the charity in November 2016.

At this visit, the commission learnt that the charity had taken over a private trust linked to one of the trustee’s late mother, which included all its assets and liabilities.

The commission said it has specific concerns relating to the management of conflicts of interest, and whether the “trustees have acted in the best interests of the charity to accept the assets and liabilities of the private trust”. It also said it is concerned that this decision has exposed the charity to significant financial risk.

As well as restricting the charity’s transactions, the regulator has also directed the trustees to provide it with information and documents.

The statutory inquiry will examine the administration, governance and management of the charity by the trustees. It will look at, in particular, whether the trustees have “exercised their legal duties and responsibilities under charity law in the administration of the charity”, and whether there has been any private benefit to the trustees of the charity.

It will also look at whether the trustees have operated the charity in furtherance of its charitable objects for the public benefit, and whether there has been misconduct and/ or mismanagement by the trustees.

 

More on