Regulator disqualifies three charity trustees

The regulatory body disqualified three trustees of the Quba Trust after an investigation

Three trustees of an international aid charity have been disqualified following a two-year investigation by the regulator.

The Charity Commission took the decision after it carried out a statutory inquiry into the Quba Trust, which according to its website was based in Mayne Avenue, Luton, set up "to alleviate poverty, provide disaster relief and promote the Islamic faith".

It said 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 charity has been asked to respond to the disqualifications and findings.

The commission said the Quba Trust was set up to provide disaster relief and advance the Islamic religion in the UK and overseas.

It said routine monitoring first raised "serious concerns" about the charity's governance and financial management.

"This was of particular concern due to the charity's international operations in Pakistan."

'Breach of trust'

The commission said the charity's then trustees also failed to act on regulatory advice and guidance, issued to make improvements in order for it to meet legal obligations.

Some of the failings, which amounted to misconduct or mismanagement, included poor record keeping, lack of evidence of use of charitable funds used overseas - and late filings of accounting documents.

The former trustees were unable to account for more than £250,000 transferred overseas, with a further £500,000 lacking a satisfactory financial audit trail, the regulator found.

"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," the commission said.

Separately, while the charity was largely inactive and under investigation by the commission, the body found it had spent more than £36,000 on a consultant.

Three people, found to be unfit to be a trustee or hold senior management positions in any charity, were disqualified for periods ranging between five and 10 years.

Since the inquiry, the current trustees have taken a number of steps to address the failures and weaknesses in the charity's governance, the commission said.

Joshua Farbridge, for the Charity Commission said: "Charities which operate internationally can be more vulnerable to abuse or harm as a result of where and how they operate.

"Our routine monitoring visit identified concerns which should have been addressed by the former trustees but were not."