The Charity Commission has frozen the bank account of a charity where one of the trustees is also the company secretary of its Irish sister charity which is being wound down and faces legal action in Ireland over allegations that it misused funding.
Its Irish parent charity Console Suicide Prevention Ltd has been accused of falsifying accounts to obtain funding, conflicts of interest and financial mismanagement. Irish regulators are investigating the allegations and the High Court in Ireland recently froze the assets of its founder Paul Kelly, his wife Patricia and son Tim.
The UK charity was set up in 2013 and two of its trustees are also trustees of the Irish branch - including husband and wife, Paul and Patricia Kelly.
For the year-ending May 2015 the charity had an income, which was entirely voluntary donations, of £133,686. Its total expenditure was £45,386, including spending £14,789 on "management and administration services" from the Irish organisation.
Last week the Irish Independent reported that the assets of Paul, Patricia and Tim Kelly had been frozen and that they have been ordered to provide details of bank accounts connected to the charity. It also reported that the charity will be wound down and its services transferred to other charities.
Last Friday the Charity Commission announced that it had opened a statutory inquiry on 4 July. A statement by the Commission said “due to the links between the Irish charity, the UK charity and the High Court action” in Ireland, “the Commission considers that the impact of the actions taking in place in Ireland affect public trust and confidence in the UK charity”.
The regulator also said it considers “recent events and actions” an indicator that the assets of the UK charity may be at “serious and significant risk of harm” and that this requires further examination and action by the Commission.
Issues under investigation include the relationship between the Irish and UK charities – and “whether the UK charity is furthering its objects for the public benefit”.
It will also look at the financial management of the UK charity, how it applies its funds in furtherance of its objects, and whether there has been any unauthorised trustee benefit.
The charity’s trustees will also be under scrutiny with the regulator assessing whether they have complied with and fulfilled their duties and responsibilities as trustees under charity law in the administration, governance and management the charity - and that conflicts of interest have been properly managed.
Lastly the regulator will assess if any misconduct or mismanagement has taken place by the UK trustees – and whether remedial regulatory action is necessary.
As part of the inquiry, the Commission has taken immediate action to freeze the charity’s bank accounts in order to protect the charity’s funds and other property.
On Friday the regulator said that the opening of the inquiry was “not in itself a finding of wrongdoing”. Rather, the purpose of the inquiry is to “examine issues in detail and investigate and establish the facts so that the regulator can ascertain whether there has been misconduct and mismanagement”, it said.
Console Suicide Prevention UK was approached for comment today but did not respond by the time of going to press.
Last month, a spokesman for the charity told Civil Society News the charity was "a totally seperate legal and operational entity to Console in the Irish Republic".
"I wish to confirm that there are no concerns for the future of the counselling and support services we provide to those in suicidal crisis and to those bereaved through suicide in the UK.
"Console Suicide Prevention UK complies with all the Charity Commission's regulations and also complies with any other statutory regulations governing the charity sector in the UK," he said.
