Mohammad Bhaiyat, as a trustee on behalf of Olive Grove Foundation v The Charity Commission for England and Wales
[2023] UKFTT 307 (GRC)
Imran Haidar v Charity Commission for England & Wales
24 June 2024
[2024] UKFTT 530 (GRC)
First-tier Tribunal
A charity's trustees were challenged by the Charity Commission for various problems (late paperwork, unclear finances, etc.). The trustees appealed, but the court decided the Charity Commission had good reason to investigate. It wasn't a judgment of guilt, just a decision to examine the charity's affairs more closely.
Key Facts
- •Appeal against the Charity Commission's decision to open a Statutory Inquiry into Asia Pacific Children's Fund.
- •Appellant, a trustee, didn't appear at the hearing; his representative lacked understanding of proceedings.
- •Five regulatory concerns: breaches of governing document, late filings, inaccurate returns, connected party transactions, and financial discrepancies.
- •Statutory Inquiry is ongoing; no finding of wrongdoing yet.
- •Appellant failed to provide written or oral submissions.
- •Connected party transactions lacked transparency and proper documentation.
- •Overseas expenditure lacked justification and value-for-money assessment.
- •Serious breaches of the Charity's Governing Document, including failure to keep minutes.
- •Late filing of statutory returns and discrepancies in reported financial information.
- •Appellant failed to discharge the burden of proof.
Legal Principles
The Tribunal's role is to determine whether the decision to open a Statutory Inquiry was one that no reasonable decision-maker could have made.
Regentford Limited v. The Charity Commission for England and Wales and Her Majesty’s Attorney General [2014] UKUT 0364 (TCC)
The appeal is not a rehearing; the Tribunal doesn't consider information not before the Respondent when the decision was made.
Sections 321; 322 and Schedule 6 to the Act
The burden of proof lies on the Appellant to show the Statutory Inquiry should not have been opened.
Sections 321; 322 and Schedule 6 to the Act
Opening a Statutory Inquiry is not a finding of wrongdoing.
Sections 321; 322 and Schedule 6 to the Act
Outcomes
Appeal dismissed.
Sufficient grounds of regulatory concern existed to justify the opening of a Statutory Inquiry, based on the Regentford precedent.
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