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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.
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 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.
The jury at Swansea Crown Court heard on Thursday that the alleged insurance fraud came at a time when Awema was struggling financially. 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.
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. The charity, which promoted diversity and equality projects across Wales, folded in 2012 when public funding was withdrawn after claims of financial mismanagement.
By early 2012, the insurance policy had racked up a direct debit bill of more than £3,500. 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.
The prosecution say that the money should never have been paid out by the charity. 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.
However, on Thursday the jury was given a clearer picture of the charity's finances by its treasurer, Stephen Matthews. 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'
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. Giving evidence, Mr Matthews said the charity was relying on its core Welsh government funding and reserves.
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.
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 court then heard from the charity's financial director, who said Mr Malik had cashed two Awema cheques worth £11,840.
Mr Malik also denies fraudulently cashing cheques worth more than £11,000 to pay of his own credit card debts. 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.