The Charity Commission has opened a statutory inquiry into controversial cancer charity Kids 'n' Cancer UK after it was made aware that the chief executive and another employee had been arrested on suspicion of financial mismanagement.
The charity regulator announced that it had opened a statutory inquiry into the organisation today, following the arrest of Mike Hyman, founder, trustee and chief executive of the organisation and his wife on suspicion of theft.
The inquiry is not the first time the Commission has engaged with the charity. It has previously become involved more than once, including after the charity intervened to offer proton beam therapy to Aysha King, a child with cancer whose parents were arrested after abducting him and fleeing to Spain.
The charity raised over £50,000 for Aysha King's family in 2015, but then refused to give to cash to his family after the NHS agreed to fund King’s proton beam treatment. It later refunded £360 of £50,000.
The Commission said it had now established “clear and on-going regulatory issues relating to the administration and financial controls of the charity” following the arrest of Hyman and his wife.
'Historic engagement' with Kids 'n' Cancer UK
The charity has objects to provide “assistance and financial support to children seeking cancer treatment, and to assist with the overseas costs of proton beam therapy” which is not available in the UK.
According to the Commission’s statement, the charity regulator had been in contact with the charity previously regarding concerns over its financial management in 2014. The response by the charity was deemed satisfactory at the time, but following the arrest of Hyman, the Commission said “further concerns about the charity’s management and financial controls have now arisen”.
The Charity Commission said the purpose of this statutory inquiry will be to examine: "the charity’s governance, particularly since only one trustee remains active, the trustee’s management of the charity’s financial affairs including its financial controls, fundraising activities and risk to charity property and the extent to which trustees have properly authorised benefits and remuneration a trustee and employee at the charity".
In Governance & Leadership Magazine
The Commission “remains in contact with the Derbyshire Police and will cooperate with the police investigation as necessary”.
According to its last set of financial accounts up to the 31 October 2015, Kids 'n' Cancer UK had an income of £445,441 and spending of £569,955.
A spokeswoman for Kids 'n' Cancer UK has been contacted for a comment.
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