UK regulator to probe Sikh charity over mismanagement

LONDON : Britain’s regulator of charity organisations has opened an inquiry in the Asthan Babe Ke Trust, whose objectives include advancing the Sikh religion and education, relief of poverty and the provision of facilities for social recreation.

The charity commission said on Monday it had “serious regulatory concerns” that the group has not been properly managed by trustees due to an internal dispute. The group’s objectives include providing elderly care facilities in the West Midlands and elsewhere in the UK.

The commission said concerns were raised in 2017 regarding allegations of personal benefits, unmanaged conflicts of interest, invalid appointment of trustees, undeclared income and poor financial controls.

It then set the charity an action plan to help the trustees resolve the dispute and issues raised, which included commencing a mediation process, a statement from the regulator said.

“The commission is concerned about whether the trustees have sufficient oversight and control over the charity’s funds, payments and records given that the charity is seemingly controlled and administered by an executive committee who manage the charity’s cash funds”, it said.

Concerns include the management of the charity’s freehold assets of almost £1.8 million (around ₹16 crore). In order to protect the charity’s assets, the commission advised the trustees to vest its UK property in the official custodian, but the trustees have so far failed to do so.

“The trustees have failed to make any meaningful progress against the regulator’s action plan. As a result the commission has opened a statutory inquiry to address its concerns”, the statement added.

The latest financial statement of the group filed with the commission shows that in 2016, its income was £ 115,891 (around ₹1 crore) and the spending was £ 56,149 (₹50 lakh).

Its area of operation is mentioned as England, Wales and Germany.