Inappropriate expenditure allegations at closed mental health charity probed

15 Aug 2025 News

By melita/Adobe

Scotland’s sector regulator is investigating a recently closed mental health charity over allegations of inappropriate expenditure.

OSCR said this week it was investigating Mental Health Aberdeen after concerns were raised by members of the public over its sudden closure in July.

Mental Health Aberdeen, which was founded 75 years ago, announced on social media last month that it was closing with immediate effect.

Chair Mark Lough said in a statement that it is with “sadness and regret” that services like counselling, school projects for young people, children and community projects and an amputee project would close down.

Lough’s statement continued: “Mental Health Aberdeen has faced the stark reality of a complex set of circumstances, including growing pressure on its services as demand for mental health support across the region continues to rise at an unprecedented pace.

“Despite strategic decisions to invest over the last few years, with the intent of diversifying funding streams from other sources of income away from traditional public funding and fundraising sources, we have not been in a position to realise the long-term benefits of this in the current landscape.”

An OSCR spokesperson said this week: “We have received a number of concerns from the public about the closure of Mental Health Aberdeen, which included allegations of inappropriate expenditure by the organisation.

“These concerns are currently being assessed in line with our standard policies and procedures.”

Call for more investment

In his statement last month, Lough said: “We would like to take this opportunity to thank our staff, volunteers, partners, and supporters for their commitment and compassion over the past seven decades and during this extremely challenging time.

“This decision will have a direct impact on each of them, we recognise the significance of that and many of us will feel this deeply.”

He called on “funders, partners and decision-makers and policymakers” to recognise the need for more investment in mental health services.

“It is vital that charities, like ours, are given the tools and resources to continue delivering essential services to those who need them most, before it’s too late,” he added.

Mental Health Aberdeen and liquidators MHA have been contacted for comment.

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