NI charity watchdog appeals after law chief casts doubt on many of its rulings

A CHARITY watchdog has been told that hundreds of its adjudications could be invalid following a court order.

The Charity Commission (CCNI) is a public body tasked with ensuring charities in Northern Ireland behave lawfully.

A legal challenge to two of the CCNI’s recent decisions has now raised serious doubts on the validity of some previous rulings.

One expert warned it could lead to massive financial implications affecting leading charities.

In both cases — appeals to CCNI rulings against the Disabled Police Officers Association and Newry and Mourne Carers — the Attorney General found that its power was limited by statute and that all decisions must be taken by board members or a committee containing at least one board member.

Potentially this means hundreds of other decisions taken by CCNI staff instead of board members are in doubt.

CCNI is appealing the Attorney General’s decision, saying board members had at times authorised staff to act on their behalf and they stood by their decisions.

The Department for Communities is backing the appeal.

Since its creation in 2009, the body has made thousands of decisions.

These include more than 500 casework decisions, 78 directions and 141 orders.

Typical orders include replacing a charity trustee with an interim manager, and approving how a charity that is closing down should dispose of its assets.

Gregory Burke helps to run the legal advocacy group ProbityaacNI for charities in Northern Ireland.

He said the financial implications would be massive for CCNI if it loses its appeal.

“This could have very wide-ranging implications,” he told the Belfast Telegraph.

“CCNI has been telling charities to get their house in order, but some decisions they have made are now potentially unlawful.”

Mr Burke added he was surprised that the Department for Communities had decided to back CCNI.

“I can sympathise to a certain degree with the permanent secretary, as this is something an elected minister should be taking responsibility for,” he said.

“If they lose this in a spectacular fashion I can’t even start to imagine what the final costs will be.

“One case involved Sean Caughey from Newry and Mourne Carers. His stakeholders were told by CCNI he was under investigation and their income dried up.

“They appointed a PWC manager to take over, which would have cost a great deal. There’s also the vast amounts of money spent on legal fees, it’s a massive thing.”

He added that other charities likely to be affected included the USPCA and Lough Neagh Rescue, as well as the Co Down businessman Derek Tughan, who was ordered to pay £25m in tax by CCNI last year after he converted two of his company properties into charities.

CCNI said yesterday: “We are aware of a number of Charity Tribunal decisions and ongoing cases, which are based on a point of law regarding the validity of the commission’s decisions.

“The commission stands over all our decision making processes, which are based on robust legal advice.

“The commission has sought permission to appeal the Caughey Tribunal decision to the High Court.”

The Department for Communities said: “The department fully supports the commission’s interpretation of its powers under the Charities Act (NI) 2008 and has sought to become a Notice Party in view of the possible repercussions across Government should the court take a contrary interpretation.”

❝ If they lose this in a spectacular fashion I can’t even start to imagine what the final costs will be