‘Sector expert’ banned for 10 years after aid charity investigation
· Posted on: January 23rd 2025 · read
Quba Trust monitoring inspection
In 2015, the Charity Commission for England and Wales (the ‘Commission’) proactively carried out a monitoring inspection of Quba Trust due to its international operations in a high-risk area.
The monitoring inspection sought to review the charity’s policies and financial records, and to ensure the trustees were complying with their legal obligations in exercising control and management over the administration of the charity and its activities overseas.
As a result of the monitoring inspection, the Commission identified several areas for improvement in relation to the trustees’ overall administration and management of the charity. Consequently, the Commission issued the charity’s then trustees with regulatory advice and guidance under section 15(2) of the Charities Act 2011 (the ‘Act’).
The inquiry concluded that the former trustees were unable to account for more than £259,000 that was transferred overseas, with a further £522,000 lacking a satisfactory audit trail.
The Commission re-engages
In November 2021, the Commission re-engaged with the charity to assess whether the trustees had acted upon the Commission’s previous regulatory advice and guidance.
Following a compliance meeting with some of the charity’s trustees at the time, and an inspection of the charity’s records, the Commission identified serious regulatory concerns regarding the financial management of the charity.
These concerns included that the trustees were unable to demonstrate that payments made to some of these trustees were managed effectively and in line with the requirements of the charity’s governing document and internal financial controls.
Conclusion from inquiry
The inquiry concluded that the former trustees were unable to account for more than £259,000 that was transferred overseas, with a further £522,000 lacking a satisfactory audit trail. The charity was also largely inactive during the investigation but spent more than £36,000 on a consultant, which the commission concluded was not in the charity’s best interests and constituted misconduct or mismanagement.
This once again goes to highlight the importance of good governance and ensuring that an accurate and up to date record is maintained of possible conflicts of interest, transactions with related parties and adhering to a robust set of internal controls.
As a result of the investigation, the Charity Commission has disqualified a “charity sector expert” and two other former trustees of the charity.
