The Scottish regulator has banned a charity from operating and ordered its bank not to sell any of its property amid “serious concerns” that its assets are at risk.
Two weeks after opening an inquiry into Pollokshields Development Agency, the Office of the Scottish Charity Regulator has taken the unusual decision to impose the restrictions.
The action means the charity’s trustees will not be able to spend any money until at least 1 December, when the current orders elapse.
In a brief interim inquiry report, OSCR said Glasgow-based Pollokshields Development Agency was awarded charitable status on 16 June 2002.
It added: “OSCR opened an inquiry into the charity in May 2023 on receipt of information alleging that charity trustees have been removed and new trustees appointed not in accordance with the terms of the constitution.
“OSCR was also informed that the current trustees have continued to carry on the activities of the charity without access to the charity’s funds.”
The regulator said: “These allegations have raised serious concerns that the charity’s assets are at risk.
“OSCR therefore needs to undertake further inquiries to ensure the charity’s assets are protected and that the charity trustees are acting in line with their legal duties.”
It said that, “given the seriousness of the situation and the risk of harm to the charity”, it was appropriate to order the charity to cease all activities while the inquiry was ongoing.
“OSCR has taken the additional precautionary action of directing the charity’s financial institutions not to part with property it is holding on behalf of the charity without OSCR’s consent,” the statement added.