The Charity Commission has issued a formal order requiring governance reform at the Islamic Centre of England after finding that the charity breached its previous advice and orders.
The commission’s order comes amid a three-year investigation into the charity, which involved the appointment of an interim manager to the exclusion of its trustees.
Interim manager and sector lawyer Emma Moody has now left the charity, a centre of Islamic worship in north London, while two additional trustees have been appointed.
Announced today, the commission’s order will compel its trustees to provide rigorous oversight of future speakers at the charity and its online activity.
Misconduct
The commission opened its statutory inquiry into the Islamic Centre of England in November 2022 after finding that the charity’s trustees had failed to comply fully with a previous official warning and action plan it had issued.
In May 2023, the commission appointed Moody as interim manager, a decision which was criticised by 35 civil society groups and individuals.
The commission today said the charity failed to comply fully with the order appointing the interim manager and its directions.
The regulator said it considers these failures, and other past breaches, mismanagement and misconduct in the administration of the charity.
However, it added that the trustees currently dispute some of these legal findings.
The commission’s Section 84 order requires the trustees to ensure that all religious services, speakers and events further the objects of the charity and are in its best interests, complying with due diligence processes put in place by Moody.
Trustees will be required to ensure the charity’s website and social media content are exclusively in furtherance of the charity’s purposes and that trustees and staff document their decisions appropriately.
The commission will monitor the trustees’ compliance with its order while is statutory inquiry continues.
Change of trustees
During its inquiry, the commission removed a requirement from the charity’s governing document for one trustee to be the official UK religious representative of the supreme leader of the Islamic Republic of Iran, and the occupant left this role.
The commission said this addressed regulatory concerns it had about the charity’s failure to manage the conflicts of interest and apparent lack of independence this caused, which were at odds with charity law.
Meanwhile, Moody had overseen the appointment of two new trustees – Hassan Poreya Yazdi and Mehreen Amjad – and taken steps to improve the charity’s management and governance, particularly regarding speakers and events.
The commission has now discharged Moody, with the expectation that trustees will deliver further improvements under the order.
Criticism over pace of investigation
The commission has been criticised during the investigation for operating at a “snail’s pace”, prompting the regulator to defend its processes.
Commission chief executive David Holdsworth said today: “As this case shows, when a charity fails to operate in line with its legal duties, we will step in to take action.
“We now expect the trustees to take the required action directed by the commission and will not hesitate to use further legal powers should that be necessary.”
Civil Society has asked the charity to comment.
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