The Charity Commission, the independent regulator of charities in England and Wales, has opened a statutory inquiry into the dissolved charity, the Khodam Al Mahdi Organisation and charitable funds purportedly raised in its name.
The charity’s objects were ‘to advance in life and help young people through the provision of recreational and leisure time activities’.
In August 2013, the regulator became aware that the charitable company had been dissolved at Companies House since 2012 but the charity had not informed the Commission that it no longer existed, or updated its details on the register as it was required to do. In following this up, the Commission discovered that funds had purportedly been raised in the name of the charity after its dissolution and that the funds were used to purchase a property.
Following correspondence with the individuals holding the property, the regulator became increasingly concerned about the basis on which the funds were raised and the protection of the charitable property. In addition, the Commission has concerns regarding the management and financial reporting by the former charity trustees.
The Commission opened a statutory inquiry on 17 February 2014 into the Khodam Al Mahdi Organisation, and funds purported to have been raised in its name. The investigation is examining the basis on which the funds were raised and is assessing whether the former trustees of the dissolved charity and the individuals holding the property have complied with charity law (see endnote 1).
It is the Commission’s policy, after it has concluded the inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the Commission are available on its website.
Notes to Editors
The Charity Commission is the independent regulator of charities in England and Wales.
2.Our mission is to be the independent registrar and regulator of charities in England and Wales, acting in the public’s interest, to ensure that:
- charities know what they have to do
- the public know what charities do
- charities are held to account
3.Section 46 of the Charities Act 2011 gives the Charity Commission the power to institute inquiries. The opening of an inquiry gives the Commission access to a range of protective and remedial powers.
1.The Khodam Al Mahdi Organisation is not on the charity register as it has legally dissolved.