Consumer group crisis as f inance chief quits
THE head of finance at Citizens Advice Scotland has quit just months after the charity’s chief executive was suspended in mysterious circumstances.
Jon Dye’s decision to stand down has sparked calls from the Tories for answers about the situation at the publicly funded consumer advice body.
Chief executive Margaret Lynch, a critic of the UK Government’s welfare reforms, was suspended last September for undisclosed reasons. Mr Dye was not suspended at any point in the past six months and there is no suggestion of any wrongdoing by him.
But Tory MSP Alex Johnstone said: ‘I am seriously concerned by this development and the finances of a charity that has received large funds from the UK and Scottish governments. It is time someone stepped in here to provide reassurance.
‘If the Government does not know why the chief executive was suspended, or why the head of finance has quit, they should be inquiring.’
The UK Department for Business, Innovation and Skills is the charity’s main funder and provided nearly £3.5million last year. The Scottish Government also helps finance the bureau network and spent £2.6million on specific projects in 2014-15.
The Scottish Daily Mail understands that Citizens Advice Scotland’s (CAS) 2014-15 accounts have been scrutinised at board level and approved by auditors, and shared with both governments.
A spokesman for the charity said: ‘We can confirm that the head of finance has resigned. We can also confirm that he has not been suspended at any point in the last six months. Funding arrangements at CAS are the subject of considerable and robust scrutiny: internally by the management team and the board of trustees, and externally by our auditors and funding organisations such as the UK and Scottish governments.
‘The funds designated for consumer landscape changes included allowances for the provision of back office services and premises as detailed in our accounts for 2014-15, which have been approved by our auditors.
‘Our finances are in a healthy position and there are sufficient reserves to meet the operational needs of the organisation for a significant time.’
Newspaper reports have claimed that the minutes of the charity’s board of trustees meeting from April last year showed questions were raised about financial management and low levels of reserves.
CAS has 61 member bureaux and a consumer helpline, forming Scotland’s largest independent advice network and assisting more than 300,000 people every year.
It recently emerged that Deputy First Minister John Swinney is considering the creation of Consumer Scotland to ‘ empower, inform and protect’ people under new powers set to be handed to Holyrood through the Scotland Bill.
But CAS could lose its ‘ advocacy funding’ from the Government as a result. In 2014, the body took on statutory information-gathering powers from Consumer Futures, commonly known by its previous name of Consumer Focus. That means it can demand information from bodies such as energy suppliers, allowing it to undertake investigations and represent consumers.
But a working group set up by the Scottish Government has proposed stripping CAS of this power and handing it to a new body called Consumer Scotland.
Mr Dye could not be contacted for comment.
‘I am seriously concerned by this’