Funds loss sees interim managers appointed at health charity

The Charity Commission has appointed interim managers to Island Health Trust amid concerns about how funds were managed by former trustees

The Commission opened a statutory inquiry in November 2017 to examine concerns over the management of the charity which promotes the provision of primary healthcare within the London boroughs of Tower Hamlets and Newham.

Questions were raised about the application of charitable funds and relevant decision making by the former trustees. The inquiry has focused on the expenditure of some £1.3m of charitable funds on strategic development, a substantial part of which involved payments to a consultancy firm owned by the charity’s previous chair.

The inquiry has found that the issues under inquiry led to the direct loss of charitable funds and the options for recovery have not yet been sufficiently explored and considered.

In the light of this, the Commission has exercised its legal powers to appoint Helen Briant and Lucy James of law firm Trowers & Hamlins as interim managers to the charity. They will independently examine and provide advice on potential claims against the former trustees. The current trustees will continue to remain responsible for matters relating to the operation, management and administration of the charity.

The Commission’s inquiry continues, and it intends to publish a report setting out its findings once the inquiry is concluded.

Pat Sweet | 23-07-2019

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