The Charity Commission has said it is looking into allegations that Tower Hamlets Council has made £300,000 worth of payments to a charity that closed 16 years ago.
A Commission spokesman confirmed to Civil Society News that it was looking into allegations made by The Wharf, the local newspaper for Canary Wharf and the Docklands, that Tower Hamlets Council has been making regular payments to the Docklands Handicapped Group, a charity which was disbanded in 2000.
The Wharf “found evidence of nearly 100 payments which have been leaving the council regularly since 2011, in sums of £1,946 to £7,182.93” with the sum total amount to more than £300,000.
Island House, a registered charity which is based on the former premises of the DHG, raised the alarm, as it was “fearful that its own funding might be in jeopardy”. It emailed the Isle of Dogs council to express concern that the “Docklands Handicapped Group is using our address to apply for funding”.
The Charity Commission spokesman confirmed that it has been approached with concerns about the funding and had reached out to both the organisation and the councils involved, but said that at the moment “there was no evidence of any fraudulent activity”. He also confirmed that the DHG was removed from the charity register in 2000.
“The Charity Commission has contacted the organisation to establish if it is still operating as a charity. We await a response.
“It is an offence to solicit funds on the basis that an organisation is a registered charity if it is not registered with the Charity Commission in England and Wales, as this is misleading to donors and the general public.
“We have contacted Tower Hamlets Council for further information regarding the organisation.”
John Biggs, mayor of Tower Hamlets Council, said: "We take this matter extremely seriously and are investigating it thoroughly. It does however concern payments made to assist with the care of a vulnerable adult, and this matter needs to be kept in mind and the matter dealt with sensitively.
"This arrangement long preceded my appointment as mayor but I will ensure any proper lessons are learnt and that any funding is in future provided in the appropriate manner and is properly accounted for.”
