Charity Commission opens statutory inquiry into Africa Relief Trust

25 July 2012

The Charity Commission, the independent regulator of charities in England and Wales has opened a statutory inquiry into Africa Relief Trust (registered charity (1077946).

The Commission opened a regulatory compliance case into the charity in September 2011 after concerns were raised regarding its business rates relief arrangements. As the case progressed, the Commission’s concerns about the risks to the charity’s assets and about the trustees’ failure to provide full and complete information mounted. In addition, two other registered charities were recently taken to court regarding business rates relief; one was found liable for business rates costs while the other charity still awaits an outcome on whether it is liable for rates totalling 1.6million¹. These verdicts added to the concerns of the Commission and the regulator opened its inquiry on 12 July 2013.

Statutory inquiries are opened to investigate regulatory concerns that the Commission considers the most serious and allow the use of legal powers, including powers to direct trustees or others.

The purpose of the inquiry is to examine regulatory concerns including whether the charity trustees have properly discharged their trustee duties when making decisions to enter into tenancy agreements and occupy those properties to further their charitable purposes and whether any benefit to the landlord or other parties is incidental to that.

The Commission has issued alerts to charities warning them of the risks associated with business rates relief.

It is normal practice for the Commission to publish a report after an investigation has concluded. Reports of previous inquiries by the Commission are available on its website.

Ends

PR 32/13

Notes to Editors

For press enquiries contact pressenquiries@charitycommission.gsi.gov.uk

1. The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information.

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 its most serious remedial and protective powers, including the power to appoint an interim manager under Sections 76 and 78 of the Charities Act.

4. Read the alert to charities regarding business rates relief.

Footnote

1. Two other registered charities are subject to the Commission’s investigations relating to business rates relief, The Public Safety Charitable Trust Limited (registered charity number 1138450) found liable for business rates costs and Kenya Aid Programme (registered charity number 1137927) still awaiting a verdict on whether it is liable for business rates costs.

- See more at: http://www.charitycommission.gov.uk/news/charity-commission-opens-statutory-inquiry-into-africa-relief-trust-250713/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CharityCommissionUpdates+%28Charity+Commission+updates%29#sthash.LGB833gm.dpuf

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Charity Commission opens statutory inquiry into Africa Relief Trust

Charity Commission opens statutory inquiry into Africa Relief Trust

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