The Charity Commission has opened a statutory inquiry into a charity after a trustee had £3,500 in cash seized under the Proceeds of Crime Act while attempting to leave the country.
The regulator opened an inquiry in October into Save the Needy, a London-based aid charity, and also made an order to prevent funds being withdrawn from its bank accounts.
The regulator had previously investigated the charity in 2015 and given it an action plan to improve. But in July the regulator was told that Ports Officers had seized funds from one of the trustees because they were not satisfied those funds would be used for a legitimate purpose. A hearing at Bedfordshire Magistrates Court permitted the cash to be held for six months.
The Commission said in a statement that these funds are currently being detained by the police pending further investigation.
“In response to the cash seizure, the Commission obtained the charity’s bank statements and identified a high number of cash withdrawals,” the statement said. “The Commission has serious concerns about these withdrawals and whether funds withdrawn can be accounted for.”
The inquiry will examine whether charity funds have been applied properly, and whether trustees have followed charity law.
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