The Charity Commission has opened a statutory inquiry into a poverty relief charity after receiving complaints about funds it sent to Yemen.
The Saba Relief & Development Foundation, which was registered as a charity in 2013, works to alleviate poverty in Yemen by distributing food, water, clothing, providing education facilities and offering financial aid.
The regulator opened a compliance case into the charity last year, after it received complaints regarding the end use of charitable funds that it sent to Yemen.
The commission said it was “concerned that the trustees have not adequately accounted for these funds”.
There are also concerns about the charity’s due diligence processes regarding its work with partner organisations in Yemen.
This case was escalated to a statutory inquiry on 19 July this year.
The regulator said it would investigate the trustees’ compliance with their legal duties, particularly in relation to compliance with the charity’s governing document.
It will also look at concerns over the end use of charitable funds and the foundation’s ability to evidence charitable expenditure in accordance with the trustees’ legal duties.
The suitability of the charity’s partnerships, including the effectiveness of its due diligence checks, will also be examined.
The commission said it could extend the scope of its inquiry if additional regulatory issues emerge.
According to the charity’s latest accounts filed with the Charity Commission, it recorded total income of £5.5m in the financial year to the end of December 2022.
Its total expenditure over the same period was £5.7m, £5.3m of which was recorded as charitable spending.
The Saba Relief & Development Foundation has not responded to Third Sector’s request for comment.