Charity Commission inquiry into the Mohiuddin Trust

The Charity Commission, has published a report following its inquiry into the Mohiuddin Trust, an educational charity which provides support to four schools in Kashmir and Pakistan.

The inquiry looked at potential misapplication of the charity’s funds, the management of conflicts of interest relating to a loan to a company connected with two of the trustees, the trustees’ role and financial management of the charity.

The Charity Commission report concluded that the governance of the charity's finance and record keeping were inadequate and that weaknesses were apparent in its financial controls and procedures.

The wider charitable sector will be interested by the fact that the trustees are ultimately responsible for a charity's business and ensure it is run smoothly. It is also necessary for the trustees to ensure that the charity carries out the work it was set up to do. It is vital for all charities to warrant that appropriate financial controls are in place to effectively manage and protect property.

The charity's progress will be monitored by the Charity Commission, and a plan of action has been implemented in order to improve the running of the charity. Additional trustees have also been appointed.

For further information, contact Elizabeth Davis in the Charities group on 023 8085 7011 or email elizabeth.davis@bllaw.co.uk.