According to the Charity Commission report ‘Gross financial mismanagement at Tower Hamlets charity’ in April 2012 it was reported that the charity had been the victim of financial mismanagement and an alleged fraud committed by the charity’s former finance manager and the chair serving at the time.
To quote the Charity Commission:
“An independent review of the charity’s finances in January 2011 concluded that approximately £104,296 of unauthorised expenses and payments had been identified between the period April 2009 and January 2011, with no evidence of an audit trail.”
Which even Tower Hamlet’s Internal Audit team might consider a trifle suspicious. Or not.
The report continues.
“The charity carried out a review of its bank statements and further established that substantial sums of money were transferred from its reserve account into the charity’s current account between the periods April 2009 to January 2012 leaving the reserve account with a balance of £80,933.26 from the previous balance of £812,486.09. There was no documentary evidence to explain why the transactions were made.”
Apparently the person suspected of the fraud has done a runner and is now living abroad, presumably in a reasonable level of comfort.
The police would like to interview the person concerned if he should ever return to these shores.
Which is pretty unlikely.
Many thanks to Ted Jeory, Investigations Editor of The Independent, for spotting the report of this fraud. We didn’t have a clue.
For more information
- Bangladeshi Parents And Carers Association (Charity Commission)