Commission freezes charity’s bank account during mismanagement inquiry

Written by Lauren Weymouth

The Charity Commission has restricted all transactions from a charity’s bank account while it investigates whether the charity has been using the assets for ‘significant private benefit’.

The inquiry into aid charity Kenya Community Support Network was opened on 22 January 2018 after concerns were raised about the charity’s expenditure and whether it was in furtherance to the charity’s objectives.

These objectives include relieving poverty, sickness and distress among Kenyans and promoting research into the conditions of life of Kenyans.

However, the Commission met with representatives from the charity to explore its internal governance, management and administration and found “strong indicators that show the charity is being used for “significant private benefit”.

Furthermore, the regulator found there was also mismanagement and misconduct in the administration of the charity, and that the charity is not carrying out activities in furtherance of its charitable objectives for the public benefit.

The Commission will address these concerns by investigating whether the trustees have acted in compliance with their legal duties, whether there has been any private benefit to the trustees of the charity and whether the trustees have operated the charity in a way to achieve its overall objectives.

During this process, the Commission has restricted the transactions from the charity’s bank account and the charity cannot make payments or part with any of the charity’s assets without the Commission’s prior written approval.

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