Charity regulator investigates Oldham charity over governance matters

17 Dec 2019 03:45 PM

Commission launches inquiry into Alauddin Siddiqui Trust

The Charity Commission has opened a statutory inquiry into a charity associated with the Jamia Mohi Ul Islam Siddiqui Mosque in Oldham, as a result of serious regulatory concerns that there may have been misconduct or mismanagement in the administration of the charity.

The Alauddin Siddiqui Trust (1159142) was registered with the Commission in 2014 with objects to advance the Islamic religion, however the trustees have told the Commission that its main activities in recent years have involved sending £60,000 to Bangladesh in connection with the Rohingyan crisis and £47,000 to Pakistan in connection with Qurbani expenditure*.

An apparent split has also led to the charity no longer providing a place of worship. The Oldham-based mosque appears to potentially be an asset of the charity, however Land Registry records show that the mosque is not currently registered as such, leading to concern about the potential loss of charitable assets.

There is also concern that the charity and a company by the same name have become merged to some extent. The Commission is concerned about the governance, management and administration of the charity, and the current trustees’ ability to rectify the issues it has identified.

The regulator therefore opened a statutory inquiry on 31 October 2019, which will examine:

• the governance arrangements within the charity
• whether there has been any loss of charitable assets
• whether there is any ongoing risk to the charity’s assets
• whether there has been misconduct and/ or mismanagement within the administration of the charity by its trustees;
• and whether the charity can be placed on a firmer footing for the future.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the Commission are available on GOV.UK.

Notes to editors:

1. *Trustees cannot apply funds for purposes which fall outside of their charity’s legal objects.
2. Section 46 of the Charities Act 2011 gives the Commission the power to institute inquiries. The opening of an inquiry gives the Commission access to a range of investigative, protective and remedial legal powers. It is not a finding of wrongdoing.
3. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work see the about us page on GOV.UK.