The Charity Commission has restricted Barnabas Aid’s ability to spend money as it undertakes a statutory inquiry, the regulator announced today.
The regulator began investigating the Christian international aid charity on 17 September after identifying legal and financial concerns.
It is investigating allegations of unauthorised payments to trustees and related parties, claims that the charity’s founders have inappropriate influence over how it operates and possible unmanaged conflicts of interest.
The regulator has temporarily restricted the charity from making any transactions over £4,000 due to concerns that its funds may have been misused in the past, and questions over the trustees’ oversight.
It said this is to protect the charity’s income, £21.6m in its most recently filed accounts for the year to August 2022, and assets, £2.35m in 2021-22.
Barnabas Aid’s structure and relationship with US-based subsidiary Nexcus is also being probed.
The investigation will also consider whether the charity is operating in furtherance of its objects and if there has been any misconduct or mismanagement by the trustees.
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The regulator’s announcement follows reports of a possible “£15m hole” in the finances of Barnabas Aid’s global network.
The Telegraph reported last month that it had seen internal documents that raised questions over money given to some senior figures at the charity, including former international chief executive Noel Frost.
Noel Frost, who was listed as the UK charity’s director and corporate secretary, left the organisation in April, less than two years after his appointment.
His departure came amid reports of founding members of the charity being suspended.
A spokesperson for the charity was reported by the Telegraph as saying at the time: “The independent investigation has been going on for months and we welcome the Charity Commission’s statutory inquiry into activities that happened in the past.
“We will continue to work closely with the commission.”
A spokesperson for the founding members of the charity said they had “complete confidence” in the Charity Commission’s investigation.
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