The trustees of a humanitarian aid charity that failed to account
for cash taken to Syria are responsible for misconduct and
mismanagement, the charity regulator has found.
In a report published
today, the Charity Commission, the regulator of charities in
England and Wales, finds several serious failures in the
administration of the charity, including
failures to properly vet, safeguard and oversee volunteers who
represented the charity, and to account for the way in which
funds were spent.
The regulator’s inquiry, which launched in 2014, aimed to
establish, among other things, whether the charity had been
misused for, or had supported unlawful or improper activity,
including facilitating military, armed, political activity, and
whether the charity’s funds had been misappropriated.
In December 2013, a volunteer who was associated with this and
other charities, took part in an aid convoy to Syria. While in
Syria, the volunteer was reported to have been abducted and later
murdered by ISIL militants.
Concerns about the charity’s involvement in aid convoys to Syria
The Commission had been engaging with the charity since April
2013 over concerns about its participation in and organisation of
an aid convoy to Syria. This activity was outside Al-Fatiha
Global’s charitable purposes at the time. The regulator had also
issued general advice about charities’ participation in aid
convoys, which it states carry “inherent risks” and are “not an
effective means of delivering humanitarian aid”.
A books and records check at the time uncovered significant
weaknesses in the charity’s records, such that the trustees were
unable to demonstrate where and how charitable funds had been
applied.
The inquiry further finds that the charity’s trustees provided
“little to no” oversight of individuals to whom they had
delegated responsibility, including those that managed
participation in convoys to Syria. The trustees did not, the
Commission finds, act reasonably to ensure the charity’s assets,
including its name, were used only to support or carry out its
purposes.
Cash not properly accounted for
The trustees also failed to ensure appropriate authorisation and
documentation around cash carried by individuals travelling on
convoys. The Commission found that individuals travelled overseas
carrying between £2000-£3000 each, but that there were
“insufficient records” as to how cash or aid were applied in
Syria.
Failures to account for charitable funds
The inquiry report criticises the charity’s trustees for failures
to account properly for donations of goods, leading to the
charity’s accounts for year ended December 2013 being qualified
by the charity’s auditor. The charity had undergone a period of
growth, after what the Commission notes was ‘highly effective’
fundraising by the charity’s trustees and supporters. The
regulator finds that Al-Fatiha Global’s internal, financial and
governance controls and processes did not keep pace with that
change.
Interim Manager
During its investigation, the regulator appointed an interim
manager (IM) to manage and administer the charity with the
trustees, including by taking full control of the charity’s
finances. While in post, the IM ensured adequate due diligence,
monitoring and risk management procedures were put in place, that
the trustee board was expanded, and that risks to charitable
assets were adequately managed.
Amy Spiller, Head of Investigation Teams at the Charity Commission,
said:
Charity represents the best of human characteristics – that’s
why the behaviour of charities, and those involved in
charities, matters. This is especially the case where charities
work to help the most vulnerable or work in areas of inherent
risk for staff and volunteers. Sadly, we found that the
trustees of Al-Fatiha Global failed in their legal duties and
responsibilities. They put their charity – its people, assets
and good name – at serious risk. I am pleased that the charity
is now on a much more secure footing, with a largely new
trustee board, and appropriate policies and processes in place
to ensure the charity delivers on its purpose safely. I hope
other trustees learn from this case – notably about the very
serious risks involved in taking part in aid convoys.
The Commission says the trustees co-operated with the inquiry and
that it is satisfied the charity is now operating lawfully.
The full inquiry report is available on GOV.UK.
