(Immediate release 31 August 2010)

The Charity Commission, the independent regulator of charities in England and Wales, has published a report on its inquiry into the charity Sivayogam (registered charity no. 1050398). The Charity runs two Hindu temples in London which provide religious facilities to the local Hindu, and in particular Tamil, communities. In addition, the Charity collects donations and sends these to educational or welfare organisations in Sri Lanka.

The Commission opened a statutory inquiry after a number of concerns were raised with the regulator about the application of the Charity’s funds in Sri Lanka and the Charity’s governance arrangements

The details of the Commission’s inquiry and its findings are set out in the report published today.

As a result of the Inquiry, the Charity has strengthened its financial controls to protect its funds from the risk of misuse or misapplication. The trustees have conducted a review of the Charity’s due diligence procedures in relation to international grants and donations, to ensure the more effective application of funds held and applied by the Charity. The implementation of guidance given by the Inquiry will strengthen the Charity’s financial controls and protect its funds from the risk of misuse.

The report contains a number of important wider issues for the charity sector. It highlights the duties and responsibilities of charity trustees, in particular their duty to put in place and monitor proper governance and decision making procedures.

The wider issues set out in the report include specific guidance relating to the duties of charity trustees when working internationally, and when operating interest-free loan schemes.

Full details of the investigation can be found on the Charity Commission’s website:

Inquiry into the charity Sivayogam (PDF)

Ends.

PR 62/10

For further information, please contact the press office.

Notes to Editors

1. The Inquiry was opened on 20 March 2007 and its substantive investigative phase concluded on 10 July 2009. The case was closed on the publication of this report on 31 August 2010.
   
2. The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.
   
3. Our mission is: to ensure charities’ legal compliance, enhance charities’ accountability, encourage charities’ effectiveness and impact and to promote the public interest in charity.
4. The Commission conducts two kinds of investigation cases. Most concerns are dealt with through non-statutory investigations called ‘regulatory compliance cases’. However, in cases of significant risk and more serious regulatory concern we may open a statutory inquiry under section 8 of the Charities Act 1993. The decision to open a statutory inquiry will be based on a number of factors, including evidence of serious suspicion of misconduct or mismanagement in the administration of the charity and/or risk to property. The criteria we use are set out in our Risk and Proportionality Framework for the Commission’s compliance work.
5. More information about the Charity Commission’s Compliance Division can be found in Charities Back on Track, a report on the themes and wider issues arising from the Commission’s compliance work. This can be found on the Commission’s website.
6. The Charity Tribunal was an independent body set up under the Charities Act 2006 to hear appeals against the decisions of the Commission, hear applications for review of decisions of the Commission and consider references from the Attorney General or the Commission on points of law. As part of a programme of reforming and streamlining the tribunal system the jurisdiction of the Charity Tribunal in respect of appeals was transferred to the General Regulatory Chamber of the First-tier Tribunal on 1 September 2009. The Tribunal only has jurisdiction in respect of Commission decisions made on or after 18 March 2008. Throughout the Commission’s report “Charity Tribunal” is used to refer to the Charity Tribunal and the First-tier Tribunal (Charity) of the General Regulatory Chamber, as applicable. Further information can be found at www.charity.tribunals.gov.uk.