Watchdog accused of being unable to release a report on controversial charity Kids Company, and is therefore being urged not to do so

  • Kids Company collapsed in 2015 despite receiving £42 million from taxpayers
  • Celebrity supporters, and even the Prime Minister David Cameron supported it.
  • Charity Commission also announced a probe into claims of mismanagement. It was prompted by allegations that children’s money had been wasted.
  • But six years later the watchdog has yet to actually publish report of its findings










The charities watchdog has been urged to ‘stop dragging its feet’ and publish a report into controversial children’s charity Kids Company – which was ordered six years ago.

Critics point out that the Charity Commission’s inquiry into Kids Company – which collapsed in 2015 despite receiving £42 million from taxpayers as well as the backing of celebrity supporters and then Prime Minister David Cameron – has taken almost as long as the seven-year Chilcot Inquiry into the Iraq War. 

After allegations of mismanagement and whistleblower allegations that children were being deprived by their money, the Charity Commission initiated its own investigation.

The Watchdog reported last night that it was delayed in an inquiry by The Insolvency Service’s High Court case. The Insolvency Service had unsuccessfully tried to block former Kids Company directors, including Camila Batmanghelidjh (its founder) and Alan Yentob, from being able to hold any further directorships.

The charities watchdog has been urged to 'stop dragging its feet' and publish a report into controversial children's charity Kids Company ¿ which was ordered six years ago. Pictured: Kids Company founder Camila Batmanghelidjh and former BBC executive Alan Yentob

The charities watchdog has been urged to ‘stop dragging its feet’ and publish a report into controversial children’s charity Kids Company – which was ordered six years ago. Pictured are Camila Batmanghelidjh, founder of Kids Company and Alan Yentob (former BBC executive).

Tim Loughton was the former Children’s Minister. He said, “This case raised serious questions about whether millions of dollars of public money were being awarded to this child.”

“We urgently need the Charity Commission not to dither and to publish its findings so that others charities can take their lessons.

Kate Hoey (former Labour MP) will raise the unusual holdup in the House of Lords.

The Mail reported that the baroness said Sunday: “I am truly shocked at how long it took for Charity Commission to release this report. The process has taken almost twice as long now as the Chilcot Inquiry.

The children's charity collapsed in 2015 despite receiving £42 million from taxpayers as well as the backing of celebrity supporters and then Prime Minister David Cameron (pictured with Batmanghelidjh)

The children’s charity collapsed in 2015 despite receiving £42 million from taxpayers as well as the backing of celebrity supporters and then Prime Minister David Cameron (pictured with Batmanghelidjh)

“I believe that High Court proceedings shouldn’t have been used to defer what should’ve been a straight-forward report about whether the charity rules have been violated.”

Children Company was established by Ms Batmanghelidjh to aid disadvantaged young people of South London in 1996.

With Mr Yentob, the then £300,000-a-year creative director of the BBC as its chairman, it expanded its operations to Bristol and Liverpool and won the support of celebrity figures including Mr Cameron, artist Damien Hirst, comedian Michael McIntyre and Hollywood actress Gwyneth Paltrow.

The charity closed its doors in 2015 shortly after Scotland Yard began an investigation into allegations that it was exploited and mistreated. Later, the police dropped this case.

It was accused of giving gifts to children and money for drug and alcohol.

It also allegedly arranged for one of its clients to have private sex-change surgery and reportedly sent a drug addict on a £55,000 stay at a Champneys spa resort.

After being accused of trying to influence BBC’s reporting, Mr Yentob resigned from the BBC. Ms Batmanghelidjh and Mr Yentob both denied any wrongdoing. They also claimed that the enemies of Cameron used Kids Company as a smear campaign.

A spokesperson for Charity Commission said last night that certain aspects of the inquiry had been placed on hold in anticipation of High Court proceedings.

“The High Court in February issued its detailed judgement, which was carefully reviewed by us. Our intention is to continue publishing our inquiry report as soon possible.

Sir Bernard Jenkin led an MPs investigation into Kids Company and concluded that the report would focus on the lessons learned for future trustees. 

Timeline for Kids Company scandal  

July 2015 –  Police launch a probe into allegations of abuse and exploitation at the charity, following the broadcast of a BBC Newsnight report. The BBC Newsnight report was eventually dropped seven years later. 

August 2015 – Kids Company collapses despite repeated warnings over its perilous financial state – just days after it was given a £3million government grant.

October 2015National Audit Office questions the reason government money was spent on the charity without focusing on what it actually accomplished. 

November 2015Public Accounts Committee described the charity as an unsuccessful ’13-year experiment’. It criticised the Labour and Conservative governments, for giving public money to fund civil service advice. 

December 2015After being accused of trying pressure journalists covering the scandal, Alan Yentob, BBC Creative Director and Chairman of the Charity, resigns.

2016MPs of the Public Administration and Constitutional Affairs Committee call upon the BBC for a reopening of its investigation into Mr. Yentob over allegations that he deliberately intimidated’ employees. 

2017 – Camila Batmanghelidjh publishes her biography. Interviews with her before publication, she defended the decision to send Dave, a drug addict, to Champneys spa for a relaxing ‘chocolate massaging’ to improve his self-esteem. The trip allegedly cost £55,000. 

October 2020 – The Insolvency Service begins its legal bid to disqualify Camila Batmanghelidjh and nine former directors from the charity, including Mr Yentob, from serving as company directors. 

February 2, 2021– A judge dismisses the bid.  

 

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