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Kids Company chiefs deny handing out cash 'willy nilly' Kids Company chiefs deny handing out cash 'willy nilly'
(about 1 hour later)
The founder of Kids Company, Camila Batmanghelidjh, and her chair of trustees, Alan Yentob, have been subjected to a ferocious grilling by MPs and forced to deny that the charity was handing out money “willy nilly”.The founder of Kids Company, Camila Batmanghelidjh, and her chair of trustees, Alan Yentob, have been subjected to a ferocious grilling by MPs and forced to deny that the charity was handing out money “willy nilly”.
During a series of heated and often bad-tempered exchanges, MPs ripped into the pair, accusing Batmanghelidjh of dodging questions and delivering instead a “non-stop spiel of psychobabble” and a “torrent of verbal ectoplasm”.During a series of heated and often bad-tempered exchanges, MPs ripped into the pair, accusing Batmanghelidjh of dodging questions and delivering instead a “non-stop spiel of psychobabble” and a “torrent of verbal ectoplasm”.
Batmanghelidjh and Yentob, who is also creative director of the BBC, were giving evidence to MPs on the Commons public administration and constitutional affairs select committee as part of its inquiry into the sudden closure of Kids Company in August.Batmanghelidjh and Yentob, who is also creative director of the BBC, were giving evidence to MPs on the Commons public administration and constitutional affairs select committee as part of its inquiry into the sudden closure of Kids Company in August.
The committee heard that the charity had spent £73,000 on a client – the highest spending on one individual – who received psychiatric treatment in a private hospital because no NHS beds were available. MPs also put it to the pair that cash was distributed to clients “in little packages through a small window in reception”. The committee heard that the charity spent £73,000 on a client – the highest spending on one individual – who received psychiatric treatment in a private hospital because no NHS beds were available. MPs also put it to the pair that cash was distributed to clients “in little packages through a small window in reception”.
In one tetchy exchange, Tory MP Bernard Jenkin asked Batmanghelidjh: “Was it true people over 18 were receiving more than £100 a week?” In one tetchy exchange, the Tory MP Bernard Jenkin asked Batmanghelidjh: “Was it true people over 18 were receiving more than £100 a week?”
When she replied that would be “very rare” he asked her: “You are aware it’s a contempt of parliament to mislead this committee and that is a very serious thing? Are you sure you want to make that statement?” When she replied that that would be “very rare”, he asked her: “You are aware it’s a contempt of parliament to mislead this committee and that is a very serious thing? Are you sure you want to make that statement?”
The committee also asked about a memo from the charity to the Cabinet Office warning that if it closed there was a danger the community it served would “descend into savagery” with possible riots and arson attacks. The committee also asked about a memo from the charity to the Cabinet Office warning that if it closed there was a danger that the community it served would “descend into savagery” with possible riots and arson attacks.
Yentob argued it was “a worst-case scenario”, adding that five days after Kids Company closed its doors a boy who had been attending crime prevention workshops was murdered. He said there had been stabbings and four suicide attempts.Yentob argued it was “a worst-case scenario”, adding that five days after Kids Company closed its doors a boy who had been attending crime prevention workshops was murdered. He said there had been stabbings and four suicide attempts.
Jenkin challenged him, saying the committee had been told that the upsurge in violence had occurred because “kids no longer had money to pay their drug pushers” and there had been a “breakdown in the flow of funds to the streets”.Jenkin challenged him, saying the committee had been told that the upsurge in violence had occurred because “kids no longer had money to pay their drug pushers” and there had been a “breakdown in the flow of funds to the streets”.
Batmanghelidjh defended financial arrangements at the charity saying that any payments over £5,000 had to be approved by the board and insisted that smaller payments to clients were properly supervised. Batmanghelidjh defended financial arrangements at the charity, saying that any payments over £5,000 had to be approved by the board, and insisted that smaller payments to clients were properly supervised.
“Everything would go in an envelope for the individual child with a receipt on top. It was then driven down to the street-level centres,” she said. “When it would arrive at the end of the week at the street-level centre the team inside that reception area would oversee the handing out of the envelope for which the client had to sign.” “Everything would go in an envelope for the individual child with a receipt on top. It was then driven down to the street-level centres,” she said. “When it would arrive at the end of the week at the street-level centre, the team inside that reception area would oversee the handing out of the envelope for which the client had to sign.”
Today’s inquiry is one of a number of investigations set up after Kids Company suddenly closed its doors in August, within days of being given a £3m restructuring grant by the government. The MPs’ inquiry is one of a number of investigations set up after Kids Company suddenly closed its doors in August, within days of being given a £3m restructuring grant by the government.
Serious questions were raised about the financial management and leadership of the charity, and the degree of sustained and substantial financial support it had received from government ministers.Serious questions were raised about the financial management and leadership of the charity, and the degree of sustained and substantial financial support it had received from government ministers.
Of particular concern, according to the outline of the scope of the MPs’ inquiry on Thursday, was the decision by Cabinet Office ministers to provide the emergency funding, despite concerns raised by the permanent secretary that included a request for “ministerial direction”.Of particular concern, according to the outline of the scope of the MPs’ inquiry on Thursday, was the decision by Cabinet Office ministers to provide the emergency funding, despite concerns raised by the permanent secretary that included a request for “ministerial direction”.
Within hours of the money being deposited on 30 July, the BBC reported that the Metropolitan police’s sexual offences, exploitation and child abuse team was investigating allegations of crimes committed on Kids Company premises.Within hours of the money being deposited on 30 July, the BBC reported that the Metropolitan police’s sexual offences, exploitation and child abuse team was investigating allegations of crimes committed on Kids Company premises.
Philanthropists who had pledged millions of pounds pulled out and the charity shut its doors on 5 August.Philanthropists who had pledged millions of pounds pulled out and the charity shut its doors on 5 August.
Batmanghelidjh founded Kids Company nearly 20 years ago. It provided care, support and education for around 36,000 vulnerable young people a year in London, Bristol and Liverpool as well as their relatives. Many of its clients experienced sexual abuse, violence, addiction, mental illness and family instability. Batmanghelidjh founded Kids Company nearly 20 years ago. It provided care, support and education for around 36,000 vulnerable young people a year, as well as their relatives, in London, Bristol and Liverpool. Many of its clients experienced sexual abuse, violence, addiction, mental illness and family instability.
Iranian-born Batmanghelidjh, a psychotherapist, was courted by David Cameron when he was in opposition, and was initially a supporter of his “big society” project. But in recent years she has been critical of the government’s austerity policies and what she sees as its failure to invest properly in child protection.Iranian-born Batmanghelidjh, a psychotherapist, was courted by David Cameron when he was in opposition, and was initially a supporter of his “big society” project. But in recent years she has been critical of the government’s austerity policies and what she sees as its failure to invest properly in child protection.
She raised over £150m in public donations for Kids Company over the years. The charity’s celebrity supporters and donors included Coldplay, Damien Hirst, the comedian Michael McIntyre, JK Rowling and Emma Thompson. She raised more than £150m in public donations for Kids Company over the years. The charity’s celebrity supporters and donors included Coldplay, Damien Hirst, Michael McIntyre, JK Rowling and Emma Thompson.