Charity Regulator Disqualifies Three Trustees

The Charity Commission, the regulatory body, has disqualified three trustees of an international aid charity. This action follows a two-year investigation and a statutory inquiry into the Quba Trust. The charity, which its website indicates was located in Mayne Avenue, Luton, stated its mission was “to alleviate poverty, provide disaster relief and promote the Islamic faith”. The Commission reported that it “found the charity was poorly managed and its now former trustees had a serious disregard for, or lack of understanding of, the importance of proper financial management and controls”. The Quba Trust has been requested to provide a response regarding the disqualifications and the inquiry’s conclusions. According to the commission, the Quba Trust was established to offer disaster relief and further the Islamic religion both within the UK and internationally. Initial “serious concerns” about the charity’s governance and financial management emerged during routine monitoring. The regulator noted, “This was of particular concern due to the charity’s international operations in Pakistan.” Furthermore, the commission indicated that the charity’s trustees at the time did not implement regulatory advice and guidance that had been provided to facilitate improvements necessary for compliance with legal obligations. These failures, categorized as misconduct or mismanagement, encompassed inadequate record keeping, insufficient proof regarding the deployment of charitable funds abroad, and delayed submission of accounting documents. The regulator determined that the former trustees could not provide an explanation for over £250,000 transferred internationally, and an additional £500,000 lacked a proper financial audit trail. The commission stated, “This breached their legal duties and was in contravention of the governing document, which constitutes a breach of trust and is misconduct and/or mismanagement in the administration of the charity.” Independently, the commission discovered that the charity had expended more than £36,000 on a consultant during a period when it was largely inactive and subject to the commission’s investigation. Consequently, three individuals, deemed unsuitable to serve as trustees or occupy senior management roles in any charitable organization, received disqualifications spanning from five to 10 years. The commission reported that since the inquiry commenced, the current trustees have implemented several measures to rectify the identified failures and weaknesses in the charity’s governance. Joshua Farbridge, representing the Charity Commission, commented: “Charities which operate internationally can be more vulnerable to abuse or harm as a result of where and how they operate.” He added: “Our routine monitoring visit identified concerns which should have been addressed by the former trustees but were not.”