OSCR escalates intervention at mental health charity to full inquiry

19 Aug 2025 News

By Ivelin Radkov, Adobe

Scotland’s sector regulator has opened an inquiry into a recently closed mental health charity over allegations of inappropriate expenditure.

Last week, OSCR said it was assessing concerns raised by members of the public about Mental Health Aberdeen’s sudden closure in July.

The concerns included allegations of inappropriate expenditure by the organisation.

This week, the regulator issued an updated statement and confirmed that it has opened a full investigation.

An OSCR spokesperson said: “We have opened an inquiry to determine whether there are any regulatory matters that require further action.

“In line with our standard policies and procedures, we are unable to comment further while our inquiries are ongoing.”

Closure after 75 years

Mental Health Aberdeen, which was founded 75 years ago, announced on social media last month 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.

“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.

For more news, interviews, opinion and analysis about charities and the voluntary sector, sign up to receive the free Civil Society daily news bulletin here.

More on