Welsh equality charity Awema to close after losing government funding

Governance | Vibeka Mair | 10 Feb 2012

The board of Welsh equality charity Awema has announced it will manage “an orderly exit” for the organisation, following the Welsh government’s decision to terminate all funding for it.

Awema, which received £8.4m in public funding, has been mired in controversy since last November, when allegations of financial irregularity were made against Awema’s chief executive Naz Malik. Since then, six trustees including the vice-chair have resigned in protest; the Welsh government and Big Lottery Fund has frozen funding to the charity, and the Charity Commission has opened a statutory inquiry.

Yesterday, Jane Hutt, finance minister for the Welsh National Assembly, revealed the findings of an investigation report by the Welsh government into Awema.

Hutt said the investigation identified failures in the governance, financial control and processes of Awema.

“In light of this, Dr Rita Austin, chair of Awema has been informed that funding for Awema is terminated with immediate effect,” said Hutt. The Big Lottery Fund has also terminated its funding to the charity.

The government report found that Awema had filed no accounts with the Charity Commission or Companies House in 2011.

It also says that a day before the government launched its investigation, the chair of Awema, Rita Austin, informed those carrying out the work that Naz Malik had informed her of a number of Awema expenditures that Malik described as “potential benefits”.

This included rugby and cricket tickets to the value of £800.

The report also said there was a clear conflict of interest that Malik’s daughter was hired as a director at the charity, and reported to him.

A statement on Awema’s website from Austin today calls the report on the charity “substantial and serious”.

Austin, who joined the charity as chair in December, said the board of trustees would be meeting today and next week, and that they would be managing an “orderly exit for the only minority ethnic development organisation which works across Wales”.

The Charity Commission will publish the results of its inquiry in due course.

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