Former company directors of defunct charitable organization Kids Company face being disqualified from running or controlling any companies for approximately six years.
The Government’s Insolvency Service stated on Monday it wrote towards the company directors letting them know that Business Secretary Greg Clark promises to bring proceedings to possess them disqualified from the such role for periods which is between two-and-a-half and 6 years.
All nine former company directors could be named within the proceedings, including Sunetra Atkinson, Erica Bolton, Richard Handover, Vincent O’Brien, Francesca Robinson, Jane Tyler, Andrew Webster and Alan Yentob, the charity’s former chairman and ex-BBC executive.
Former leader, Camila Batmanghelidjh, wasn’t formally a director at that time the charitable organization collapsed in 2015, however the proceedings will allege that they acted like a de facto director and really should therefore be also disqualified from running or controlling others, the federal government stated.
Kids Company began in 1996 to supply support for inner city children. From your original drop-in center in south London it expanded rapidly eventually boasting 11 centres, mostly within manchester. It guaranteed greater than £43m in Government funding but collapsed in August 2015 following allegations of gross financial mismanagement.
A committee of MPs within an official report later discovered that the charitable organization had helped just a small fraction of the kids it claimed to become dealing with coupled with misused funds to cover luxury products that “diverted” money using their company projects.
It reported an audit from the charity’s books that found purchases of £305 designer footwear, John Lewis throws which cost £80 each and “four products of men’s outerwear costing £149, £105, £85 and £70”. The committee stated such spending was “inappropriate, foolish and irresponsible”.
The report also castigated politicians completely as much as Pm David Cameron to be “captivated” by Ms Batmanghelidjh as well as for authorising multi-million pound grants towards the charitable organization “outside the typical decision-making process”.
It particularly criticised your cabinet Office Minister, Oliver Letwin, who, the committee found, unsuccessful to supply a “convincing justification” for ignoring the “comprehensive advice” of senior civil servants and paid £3m to Kids Company right before it collapsed.
The committee stated it was a dereliction of his duty in handling citizen money.
The Metropolitan Police also launched an analysis into reports of physical and sexual abuse in the charitable organization, however it later stated it had found “no proof of criminality”.