Probe launched into Chabad Lubavitch UK
THE CHARITY Commission has opened an investigation into one of the UK’s biggest Jewish charities over a failure to submit its accounts on time for five years in a row.
The independent regulator announced that Chabad Lubavitch UK had “failed to meet its legal obligation to file its annual accounting information” for 2015.
The commission noted the charity had “persistently failed to file its accounting documents on time for five consecutive years — filing at least 300 days late for the past four years — and the trustee has demonstrated a repeated pattern of behaviour and continuing evidence of mismanagement”.
A Chabad Lubavitch UK spokesman said it was “actively interviewing for a new chief financial officer, with the intent to put the charity in a stronger position, with greater efficiency”.
The JC reported in late July that the charity watchdog was considering taking action. Charities are supposed to submit their accounts to the commission within 10 months of the end of their accounting year.
In 2014, the charity received nearly £8,750,000 in income, up by around £1 million from the previous year.
It has a network of 26 affiliated Chabad Houses in communities and campuses around the country as well as schools and other educational and religious activities.
A second spokesperson for the charity said: “The accounts for 2014 were submitted in 2016 and the auditors are now busy with the 2015 audit. Work on the 2016 accounts are well in hand and simultaneously measures are in place to bring 2017 up to pace. In the past year we have changed auditors and are currently restructuring our accounting systems.
“Chabad Lubavitch UK is a complex organisation and it has taken longer to get up to speed than expected.”