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Awema: 'Boss defrauded struggling charity' trial told | |
(35 minutes later) | |
A race equality charity chief's fraud trial has been hearing claims about how he used the organisation's cash to pay for life assurance for his wife. | A race equality charity chief's fraud trial has been hearing claims about how he used the organisation's cash to pay for life assurance for his wife. |
Naz Malik is also accused of cashing cheques from the All Wales Ethnic Minority Association (Awema) to pay off personal credit card debts. | Naz Malik is also accused of cashing cheques from the All Wales Ethnic Minority Association (Awema) to pay off personal credit card debts. |
The jury at Swansea Crown Court heard on Thursday that the alleged insurance fraud came at a time when Awema was struggling financially. | The jury at Swansea Crown Court heard on Thursday that the alleged insurance fraud came at a time when Awema was struggling financially. |
Mr Malik denies three fraud charges. | Mr Malik denies three fraud charges. |
Previously the court was told that a life assurance policy costing Awema £90-a-month started back in April 2008. It would pay out £120,000 to Mr Malik's wife if he died. | Previously the court was told that a life assurance policy costing Awema £90-a-month started back in April 2008. It would pay out £120,000 to Mr Malik's wife if he died. |
By early 2012, the insurance policy had racked up a direct debit bill of more than £3,500. | By early 2012, the insurance policy had racked up a direct debit bill of more than £3,500. |
The prosecution say that the money should never have been paid out by the charity. | The prosecution say that the money should never have been paid out by the charity. |
Mr Malik told police he had taken a personal salary sacrifice to cover the insurance costs, and life assurance policies were being developed as a benefit for Awema staff. | Mr Malik told police he had taken a personal salary sacrifice to cover the insurance costs, and life assurance policies were being developed as a benefit for Awema staff. |
However, on Thursday the jury was given a clearer picture of the charity's finances by its treasurer, Stephen Matthews. | However, on Thursday the jury was given a clearer picture of the charity's finances by its treasurer, Stephen Matthews. |
'Relying on reserves' | 'Relying on reserves' |
The charity was setup to develop equality and diversity projects across Wales, distributing grants, and it received its core funding from the Welsh government and EU cash. | The charity was setup to develop equality and diversity projects across Wales, distributing grants, and it received its core funding from the Welsh government and EU cash. |
However, Awema was wound up in 2012 when its public funding was stopped after claims of financial mismanagement. | However, Awema was wound up in 2012 when its public funding was stopped after claims of financial mismanagement. |
Giving evidence, the former treasurer told the jury that the charity was relying on its core funding and reserves in the months before the insurance policy was taken out. | Giving evidence, the former treasurer told the jury that the charity was relying on its core funding and reserves in the months before the insurance policy was taken out. |
He said the charity was "in between projects" at that time, and without new projects the body "would have to fold". | He said the charity was "in between projects" at that time, and without new projects the body "would have to fold". |
The jury was also told the defendant's annual salary at the time was £52,651 and the total annual wage bill for the charity's four core members of staff was £127,000 pounds. | The jury was also told the defendant's annual salary at the time was £52,651 and the total annual wage bill for the charity's four core members of staff was £127,000 pounds. |
Mr Malik also denies fraudulently cashing cheques worth more than £11,000 to pay of his own credit card debts. | Mr Malik also denies fraudulently cashing cheques worth more than £11,000 to pay of his own credit card debts. |
The trial continues. | The trial continues. |