Barnabas Fund, a charity in crisis, is the subject of a statutory inquiry after the charities regulator identified serious compliance issues – including around its use of charitable funds.
In a further regulatory move, the charity, also known as Barnabas Aid, has been temporarily restricted from making transactions exceeding £4,000 without approval.
The Charity Commission announced the inquiry in October. The concerns under investigation include alleged unauthorised payments to some of the current and former trustees and related parties; allegations that the charity’s founders, including Patrick Sookhdeo, have inappropriate control or influence over charity operations; and possible conflicts of interest.
Dr Sookhdeo, along with his wife and two other founders and directors, were suspended earlier this year pending investigations by the charity’s international board.
Significant disagreements
The background to the troubles within the charity are complex, confusing and ugly, involving significant disagreements between its international board and the UK board.
Barnabas Aid said, in a statement published on its website, that it welcomes the statutory inquiry. The statement also says it appointed an independent law firm to conduct an investigation which, according to an interim report, ‘has uncovered evidence of theft and misuse of funds’.
The statement also refers to Colin Bloom’s appointment as the charity’s international CEO. Mr Bloom sent a letter to the charity’s supporters in August, informing them of his appointment and referring to ‘significant and deeply saddening developments’ within the charity.
However, this was quickly countered by a separate letter from Barnabas UK’s board chair Philip Richards apologising for Mr Bloom’s letter – and saying he (Richards), was appointed the charity’s chair by the board in April. He said the internal investigation had not been approved by the board.
Mr Richards said Mr Bloom is employed by US outfit Nexcus International which he alleged seized control of the operations of Barnabas Aid. Nexcus was established in 2020 by Dr Sookhedo and he remains a director. Its board, according to Barnabas Aid, comprises the four national chairs of Barnabas (UK, US, New Zealand and Australia).
The Charity Commission is looking into whether the charity’s structure and relationship with Nexcus is in the charity’s best interests.
When its inquiry is complete, the Commission will decide what action is needed and will publish a report. The charity’s most recently filed accounts for the year ending August 2022 show income of over £21.5m and assets of over £2.3m. Its latest accounts are nearly four months overdue, according to the Commission website.
