Citizen’s Advice Scotland has denied reports it is “on the brink of collapse”, following allegations by a Scottish charity publication it could soon close.
The report yesterday by Third Force News, claimed the charity was on its knees following withdrawal of funding by the Department for Business, Innovation and Skills.
But a spokesman for the charity told Civil Society News it “strongly refutes” the claim.
“This does not accurately reflect the state of affairs at CAS where day-to-day operations are normal and the charity’s finances are stable,” he told Civil Society News.
Yesterday, Third Force News – a news outlet owned by SCVO – quoted a “number of senior sources linked to the organisations from the recent past and present” as saying the charity’s problems stemmed from chair Dominic Notarangelo’s “obsessive” grip on decisions.
The paper reported that eight governance reviews were “forced” on the charity since the 1990s, causing the Scottish government to “take decisive action to bring the organisation into line”.
The charity’s spokesman said yesterday: “At a strategic level the organisation is undertaking a governance review, which is making good progress and will report in the summer.
“We are working closely with UK and Scottish governments as we proceed through the governance review and they have been satisfied with progress to date.”
The spokesman also denied claims that BIS was transferring its funding of CAS over to the Scottish government as a result of frustration at BIS over the charity's governance.
“Funding for consumer advice and advocacy transferred from BIS to the Scottish Government yesterday, as part of the Scotland Act settlement. BIS remains the core funder for CAS and there are no plans for this to change,” the spokesman said.
He also confirmed that BIS would continue to provide CAS with a £4.5m grant for consumer advice and advocacy services.
The allegations against CAS follow a period of upheaval at the charity following the dismissal and later sacking of its former chief executive Margaret Lynch. Lynch was dismissed last August for alleged financial misconduct. Her initial appointment three years prior to her suspension followed a quick succession of two chief executives in two years.
A spokeswoman for BIS today told Civil Society News: "The running of Citizens Advice Scotland is a matter for its board. As is normal practice, we ask all BIS-funded services to demonstrate proper spending and accountability.
“Consumer advocacy and advice were devolved as part of the Scotland Act 2016, in line with the Smith agreement. This is something that was agreed back in 2014. CAS is the key deliverer of those services in Scotland and the Scottish Government took over responsibility for policy and spending in respect of Scottish consumers from 23rd May.”
