Christian charity Barnabas Aid is facing financial sanctions as the Charity Commission investigates allegations of donation misuse.
The persecution charity has been embroiled in several scandals concerning financial mismanagement, prompting the charity watchdog to launch a statutory inquiry, its most serious form of investigation.
In a statement, the Commission announced it has restricted the charity’s payments exceeding £4,000 to “protect the charity’s income and assets”, which include an income of £21 million and assets of £2.3 million.
The inquiry will look into allegations of “unauthorised payments to some of the current and former trustees and related parties” and “possible unmanaged conflicts of interest". It will also investigate claims that "the charity’s founders have inappropriate control or influence over how the charity operates".
The charity functions under a dual governance structure, with both a UK board and an international board.
Earlier this year, Premier reported that trustees from the international board had raised concerns about the charity’s management and use of funds following whistleblower complaints.
These concerns created a rift between the two boards and led to an independent investigation, now being handled by the London law firm Crowell & Moring.
Rev Patrick Sookhdeo, his wife Rosemarie, and UK trustees Caroline Kerslake and Dr Prasad Phillips have been suspended pending the investigation. They have raised concerns about the independence of the internal investigation, which the Charity Commission is also expected to review.
The Commission’s statement added: “The inquiry will also seek to establish if the charity’s structure and relationship with Nexcus, a US-based subsidiary, is in the best interests of the charity. Some of these issues have since been reported on in the media”.
A Barnabas Aid spokesperson said: “We welcome the Charity Commission’s announcement and their decision to investigate. We will comply with both the letter and the spirit of order and instructions given by the Charity Commission. This will further reinforce confidence that donated funds will be used to help suffering and persecuted Christians, in line with our charitable objectives. This will require additional administrative challenges, but the entire Barnabas Aid team are committed to continuing our important work throughout this difficult time.”
The spokesperson also confirmed that the charity has shared a copy of an August interim report with the Commission.
The investigation was welcomed by the charity’s founders as well.Rev Sookhdeo commented: “For decades these charities have been helping persecuted Christians around the world. Now that my beloved Rosemary and I are both terminally ill, we are determined to stop the vultures circling around the £100 million assets which are desperately needed by those still suffering for their faith”.