The Charity Commission has frozen the bank accounts of a relief charity after uncovering “substantial” unexplained payments to trustees and companies they are directors of.
The regulator said today it had opened a statutory inquiry into the We Care Foundation, which was set up to provide financial and other support to victims of war or natural disasters overseas and refugees in Bristol.
The commission said it began looking into the charity in June 2022, which led to a statutory inquiry being opened in January this year after concerns were identified in the charity’s governance and financial management.
“These concerns included substantial payments from the charity to its trustees and companies for which they are directors,” the regulator said.
“The payments were not disclosed in the charity’s accounts and have not been adequately explained to the commission.”
The regulator said there was a period when the charity had only two trustees, who were married at the time, and their decision-making should have been limited to appointing the required number of trustees.
“However, the commission is concerned that significant decisions about the charity’s finances and management were made at this time,” it said.
The commission said its inquiry would examine matters including “failures by the charity’s trustee board to engage with the commission, including whether the trustees provided true and accurate information to the regulator at all times” and “any unauthorised connected-party payments and trustee personal benefits, including an examination of the charity’s contractual arrangements with third parties”.
The charity recorded income of £216,498 and spending of £232,283 in the year to the end of March 2023, accounts on the Charity Commission’s online register show.
A statement from the charity said it was addressing inquiries from the regulator with “transparency and dedication” and had provided “substantial evidence to support the investigation”.
It said: “Despite only becoming aware of the inquiry on 14 March, the charity has actively engaged with the commission, welcoming guidance, support, and an action plan.
“Regrettably, no such assistance has been offered.”
The statement said: “We are fully cooperating with the commission and are dedicated to resolving this matter as quickly as possible. Our priority remains serving our community and fulfilling our mission with integrity.
“We Care remains committed to transparency and accountability in all its operations and looks forward to a swift resolution of the inquiry with the commission’s support.”