An Islamic charity failed to hold valid elections for three years and attempted to introduce invalid reasons to reject membership applications, a Charity Commission inquiry has found.
The regulator found serious misconduct and mismanagement at the Jamia Hanfia Ghosia Mosque and Princess Street Resource Centre, which operates under its working name Princess Street Mosque and is based in Burton-on-Trent, Staffordshire.
The inquiry, which was opened in April 2022, found that the charity’s former trustees failed to hold annual trustee elections in 2018, 2020 and 2021, as mandated in its governing documents.
The former trustees told the inquiry that a trustee election was held at the charity’s annual general meeting in 2019, but the investigation found that there was no list of candidates prepared, no balloting facilities prepared and no mention of an election on the AGM’s agenda.
While the inquiry accepted that Covid-19 was an “unavoidable obstacle” to holding an AGM and election in 2020, it found that the former trustees “failed to regularise this once restrictions had been lifted”.
No AGM or election was held in 2021, with the inquiry finding that the main reason behind this was an attempt by former trustees to introduce bars to membership beyond the charity’s constitution.
After the commission repeated advice to the former trustees that their proposed bars to membership were invalid it advised that an independent election supervisor should be engaged to rule on any trustee-driven dispute relating to membership or the election process.
An independent election specialist was engaged in early 2022 by the charity to collate a membership list and facilitate an election supported by East Staffordshire Council and the police.
The commission’s inquiry report said: “All third parties made preparations for the elections, but despite the thorough work done by Popularis, the former trustees still delayed and disputed the membership list, making it unfeasible to hold an election on the proposed date.”
After the inquiry ordered the former trustees to abide by an election timetable agreed with Popularis and defer to the independent specialist on any deadlocks relating to the membership or election process, an election was held on 9 June 2022.
The charity’s members elected an entirely new board.
The commission also received complaints concerning unauthorised trustee benefit, but after analysing the charity’s bank statements the inquiry did not find any evidence supporting these allegations.
The charity is in the process of changing its structure to a charitable incorporated organisation, the inquiry report adds.
The regulator said it had “received assurances and is satisfied that the current trustees understand their duties” and are “capable of effectively managing the charity”.
Amy Spiller, head of investigations at the Charity Commission, said: “In this case, we found the former trustees failed, during a significant period of time, to ensure those entitled to membership of the charity had the opportunity to vote in regular trustee elections. They failed to act in the charity’s best interests, so let down the charity and its members.
“Our inquiry has addressed these issues and led to improved governance within the charity. We expect the new trustees to follow the advice and guidance we have provided.”
The Princess Street Mosque did not respond to Third Sector’s request for comment.