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| Kids Company funded relatives of its staff, said report sent to ministers | Kids Company funded relatives of its staff, said report sent to ministers |
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| Cabinet Office ministers signed off on a final £3m grant to Kids Company just days after being sent a secret report that confirmed the charity was funding some relatives of staff members, according to a leaked document. | Cabinet Office ministers signed off on a final £3m grant to Kids Company just days after being sent a secret report that confirmed the charity was funding some relatives of staff members, according to a leaked document. |
| The report, seen by BBC Newsnight and Buzzfeed, was commissioned by Kids Company itself and written by professional services company PwC in response to complaints by former staff members to the charities watchdog, the Charity Commission. | The report, seen by BBC Newsnight and Buzzfeed, was commissioned by Kids Company itself and written by professional services company PwC in response to complaints by former staff members to the charities watchdog, the Charity Commission. |
| It was handed to the Cabinet Office just days before two ministers, Oliver Letwin and Matthew Hancock, approved the handing over of a final rescue grant to the charity a week before its collapse. | It was handed to the Cabinet Office just days before two ministers, Oliver Letwin and Matthew Hancock, approved the handing over of a final rescue grant to the charity a week before its collapse. |
| The report is said to have found spending of £134,293 on two relatives of staff members over a number of years, most of it on therapy but also on other items including a £305 pair of designer shoes. | The report is said to have found spending of £134,293 on two relatives of staff members over a number of years, most of it on therapy but also on other items including a £305 pair of designer shoes. |
| Among the alleged payments, the report is also said to have found about £50,000 to fund the PhD of someone described as the child of an Iranian diplomat, which the charity explained in relation to clinical needs and said was underwritten by a private sponsor. | |
| Letwin is known to be a long-time supporter of Kids Company. He visited the charity as shadow home secretary and named Camila Batmanghelidjh, the charity’s founder, as his hero of 2002 in the Independent for “turning young people away from a conveyor belt of crime”. | Letwin is known to be a long-time supporter of Kids Company. He visited the charity as shadow home secretary and named Camila Batmanghelidjh, the charity’s founder, as his hero of 2002 in the Independent for “turning young people away from a conveyor belt of crime”. |
| Asked whether the government would release the report, the Cabinet Office refused to acknowledge its existence or confirm that ministers had seen it, saying there was a policy of not commenting on leaked documents. | Asked whether the government would release the report, the Cabinet Office refused to acknowledge its existence or confirm that ministers had seen it, saying there was a policy of not commenting on leaked documents. |
| However a Cabinet Office spokesman said: “The £3m funding provided to Kids Company had strict terms and conditions to make sure that poor financial management stopped.” | However a Cabinet Office spokesman said: “The £3m funding provided to Kids Company had strict terms and conditions to make sure that poor financial management stopped.” |
| In evidence to MPs, the Cabinet Office appeared to suggest that it delayed payment of the £3m grant until it had seen the results of the preliminary investigation by PwC, which does not pass any judgment but reports its factual findings. | In evidence to MPs, the Cabinet Office appeared to suggest that it delayed payment of the £3m grant until it had seen the results of the preliminary investigation by PwC, which does not pass any judgment but reports its factual findings. |
| Kids Company collapsed just days following the receipt of the £3m, after the BBC reported that police were investigating a report of alleged sexual abuse on its premises and philanthropists withdrew funding. | |
| A spokesman for the charity’s leadership said “Kids Company was fully transparent and co-operative” and that the allegations examined in the report were “unsubstantiated”. | A spokesman for the charity’s leadership said “Kids Company was fully transparent and co-operative” and that the allegations examined in the report were “unsubstantiated”. |
| Alan Yentob, the chair of trustees at Kids Company, told a committee of MPs last week that the PwC report had not found very much to substantiate allegations against Kids Company. | Alan Yentob, the chair of trustees at Kids Company, told a committee of MPs last week that the PwC report had not found very much to substantiate allegations against Kids Company. |
| He told them: “Because of the allegations going on, we had to go to PWC and pay them £50,000 to tell us that there was not much substance in the allegations and therefore the Cabinet Office should go ahead and give us the money.” | He told them: “Because of the allegations going on, we had to go to PWC and pay them £50,000 to tell us that there was not much substance in the allegations and therefore the Cabinet Office should go ahead and give us the money.” |
| David Cameron has defended giving the charity “one more go” by approving a final £3m grant, just over a month before it collapsed in August this year. | David Cameron has defended giving the charity “one more go” by approving a final £3m grant, just over a month before it collapsed in August this year. |
| Downing Street has also said it does not recognise the criticism of Tim Loughton, a Conservative former children’s minister from 2010 to 2012, who has blamed No 10 for overruling his concerns after Batmanghelidjh wrote to the prime minister directly asking for money. | Downing Street has also said it does not recognise the criticism of Tim Loughton, a Conservative former children’s minister from 2010 to 2012, who has blamed No 10 for overruling his concerns after Batmanghelidjh wrote to the prime minister directly asking for money. |
| On Thursday, Loughton said: “Basically, it went over our head at the Department for Education. As was the characteristic of Camila Batmanghelidjh, she wrote the ‘Dear David’ letter and went straight to No 10. | On Thursday, Loughton said: “Basically, it went over our head at the Department for Education. As was the characteristic of Camila Batmanghelidjh, she wrote the ‘Dear David’ letter and went straight to No 10. |
| “There’s always this subplot of: ‘There is going to be terrible publicity on this … it’s not going to reflect well on the government and all these kids.’” | “There’s always this subplot of: ‘There is going to be terrible publicity on this … it’s not going to reflect well on the government and all these kids.’” |
| Loughton said Kids Company would “mesmerise” people in positions of power to “pay up or else”. | Loughton said Kids Company would “mesmerise” people in positions of power to “pay up or else”. |
| Since Kids Company collapsed, MPs have disputed the charity’s claims that it provided services to 36,000 children, young adults and their families, with council officials saying they have been given records of just 1,700 cases. | Since Kids Company collapsed, MPs have disputed the charity’s claims that it provided services to 36,000 children, young adults and their families, with council officials saying they have been given records of just 1,700 cases. |
| The MPs also asked about allegations Kids Company was handing over more than £100 a week to some people who were actually over 18. | The MPs also asked about allegations Kids Company was handing over more than £100 a week to some people who were actually over 18. |
| Batmanghelidjh said this was very rare, clarifying that the “living allowances” given to clients came in the form of food vouchers, bus passes and money, and ranged from £10 to £200 a week. | Batmanghelidjh said this was very rare, clarifying that the “living allowances” given to clients came in the form of food vouchers, bus passes and money, and ranged from £10 to £200 a week. |