Paul Flynn, a Labour MP who sat on one of the committees which held an inquiry after Kids Company collapsed, has said that MPs have “unfinished business” with the charity and that there should have been more action taken against ministers involved.
After the Insolvency Service announced earlier this week that the former trustees and chief executive face being banned as company directors, Flynn posted a blog on his website saying that there is “unfinished business”.
He said: “Great to hear that the Kids Company trustees are being brought to book for their failures to do their work in ensuring financial viability to this inefficient charity.”
However, Flynn said that the Public Administration and Constitutional Affairs Committee, which launched an inquiry into Whitehall’s relationship with the charity and published a damning report about the failures of those involved, could have gone further.
“I have long argued that the Public Administration Select Committee has not finished its task on this,” he said.
He added that there have been no “penalties” for the Cabinet Office ministers Oliver Letwin and Matthew Hancock, who overruled senior civil servants to give the charity £3m shortly before its collapse.
“The Prime Minister should have reported them to the Independent Adviser on Ministers' Interests who supervises ministers' conduct. It's a long story but it did not happen,” he said.
Charity Commission inquiry ongoing
The Charity Commission launched a statutory inquiry into the collapse of Kids Company shortly after it collapsed in the summer of 2015.
But the work of the Official Receiver to wind-up the charity took precedence, and the Commission said it would “take into account their findings in our inquiry”.
A spokeswoman said the regulator is currently considering the latest developments but could not say when it expects to publish its report.
She said: “We have been liaising closely with the Official Receiver and the Insolvency Service over the last two years, and are aware of the Insolvency Service’s intention to bring disqualification proceedings against the former trustees of the charity from running or controlling companies under companies legislation.”
She added: “We cannot, at this time, comment on the timescales of the conclusion of our inquiry, as we need to consider carefully with the Insolvency Service and Official Receiver the impact of the recent action on it and its timing.”
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