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Awema: 'Boss defrauded struggling charity' trial told | Awema: 'Boss defrauded struggling charity' trial told |
(about 3 hours 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. |
The jury has also heard allegations that Naz Malik cashed cheques for more than £11,000 - saying the All Wales Ethnic Minority Association (Awema) owed him the money. | |
One of the alleged frauds was committed at a time when Awema was struggling financially, Swansea Crown Court heard. | |
Mr Malik denies three fraud charges. | Mr Malik denies three fraud charges. |
The charity, which promoted diversity and equality projects across Wales, folded in 2012 when public funding was withdrawn after claims of financial mismanagement. | |
One of the allegations put before the jury was that Mr Malik took out a life assurance policy that would have paid his wife £120,000 if he died. | |
Awema footed the £90-a-month bill for the insurance policy, racking up over £3,500 between 2008 and 2012. | |
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. |
On Thursday, the charity's treasurer Stephen Matthews told the jury that at around the time the insurance policy was started, the charity was struggling financially. | |
'Relying on reserves' | 'Relying on reserves' |
Giving evidence, Mr Matthews said the charity was relying on its core Welsh government funding and reserves. | |
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 court then heard from the charity's financial director, who said Mr Malik had cashed two Awema cheques worth £11,840. | |
Saquib Zia said he handed over a pre-signed cheque for £2,500 in March 2010 after Mr Malik insisted he was owed the money for expenses, and he would provide the receipts later. | |
Mr Zia said he was reluctant to issue the cheque, but said Mr Malik was his boss and "he promised he would bring the claims up to date". | |
The second cheque cashed was for £9, 340.36 - an amount the prosecution claimed was the exact outstanding debt on Mr Malik's credit card account. | |
Mr Zia told the court Mr Malik had taken the cheque from his office while he was away on a day's leave. | |
"I was very nervous as the amount was substantial and I was cross because we hadn't sorted the original payment," said Mr Zia. | |
"I said we can't do this, you have to get approval from the board." | |
The former financial director said Mr Malik told him in an email that he "would explain it to the board members". | |
The trial continues. | The trial continues. |