Charity Commission publishes report on inquiry into the Mohiuddin Trust

17 June 2010

The Charity Commission, the independent regulator of charities in England and Wales, has published a report on its inquiry into the Mohiuddin Trust, registered charity no.1105585, (formerly known as Al Ehya Trust). The charity provides financial and educational support to four educational establishments in the earthquake areas of Kashmir and Pakistan.

The inquiry looked at a number of issues, including potential misapplication of the charity’s funds, the management of conflicts of interest relating to a loan to a company connected with two of the trustees and the trustees' role and financial management of the charity. The details of the Commission's inquiry and its full findings are set out in the report published today.

The financial governance of this charity was poor, its record-keeping poor and there were weaknesses in its internal financial controls and procedures. However, additional trustees have now been appointed and improvements made to the charity's management and administration. An action plan is being implemented and the charity’s progress will be monitored by the Commission.

The Commission's report also highlights issues for the wider sector. These highlight some wider governance issues which are pivotal in the managing of charities as trustees have, and must accept, ultimate responsibility for the affairs of a charity, ensuring that it is well-run and carrying out the work it was set up to do. Ensuring robust and adequate financial controls are in place to properly manage and protect property is vital for all charities.

Full details of the investigation can be found on the Charity Commission's website.

Notes:

The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.
Our mission is: to ensure charities' legal compliance, enhance charities' accountability, encourage charities' effectiveness and impact and to promote the public interest in charity.

The Commission conducts two kinds of investigation cases. Most concerns are dealt with through non-statutory investigations called 'regulatory compliance cases'. However, in cases of significant risk and more serious regulatory concern we may open a statutory inquiry under section 8 of the Charities Act 1993. The decision to open a statutory inquiry will be based on a number of factors, including evidence of serious suspicion of misconduct or mismanagement in the administration of the charity and/or risk to property. The criteria we use are set out in our Risk and Proportionality Framework for the Commission's compliance work.

More information about the Charity Commission's Compliance Division can be found in Charities Back on Track, a report on the themes and wider issues arising from the Commission's compliance work. This can be found on the Commission's website.

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