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David Cameron 'mesmerised' by Kids Company boss David Cameron 'mesmerised' by Kids Company boss
(35 minutes later)
Prime Minister David Cameron was "mesmerised" by the Kids Company boss Camila Batmanghelidjh and over-ruled concerns raised, it has been claimed.Prime Minister David Cameron was "mesmerised" by the Kids Company boss Camila Batmanghelidjh and over-ruled concerns raised, it has been claimed.
A senior figure involved in funding talks with the charity told BBC assistant political editor Norman Smith: "We were all over-ridden by Number 10." A senior figure involved in funding talks with the charity told the BBC's Norman Smith: "We were all over-ridden by Number 10."
Kids Company has told the government it will close its services on Wednesday evening. BBC Newsnight's Chris Cook says Kids Company has told the government it will close its services on Wednesday evening.
It got £3m from ministers a week ago.It got £3m from ministers a week ago.
A joint investigation by BBC Newsnight and BuzzFeed News last month revealed the grant from the Cabinet Office would only be paid on the condition that Ms Batmanghelidjh, its high-profile chief executive, agreed to step down as part of a reorganisation.
It was finally paid when Ms Batmanghelidjh agreed to step down to take up a new advocacy and clinical role.
She denied claims the charity, which supports deprived young people and their families, had been mismanaged and that this had led to government pressure for a restructure.
'Glamour'
The source suggested officials and ministers at the Department for Education had repeatedly expressed opposition to continued funding for the charity because of concerns about its performance and management.The source suggested officials and ministers at the Department for Education had repeatedly expressed opposition to continued funding for the charity because of concerns about its performance and management.
It is suggested such concerns were expressed as far back as 2012.It is suggested such concerns were expressed as far back as 2012.
But, the source added: "She was a good news story for the Conservative Party. It was a case of glamour over substance." But, the source added: "She (Ms Batmanghelidjh) was a good news story for the Conservative Party. It was a case of glamour over substance."
Kids Company said closure speculation was "dangerous and irresponsible".
The Cabinet Office said it would not comment on whether the charity would close.The Cabinet Office said it would not comment on whether the charity would close.
The Cabinet Office's £3m grant had been intended for a "transformation and downsizing plan" that would support the charity as it reformed itself.
Newsnight policy editor Chris Cook said attempts were being made to recover the grant because the Cabinet Office believes that the conditions attached to the use of the money were not met.
He said the charity appeared to have used some of the cash to pay staff - a day-to-day cost for which officials say it was not intended.
Former children's minister Tim Loughton said he had raised "serious concerns" over whether funding representing value for money when he was in government.
He added: "This was a large amount of public funds, it was the second largest grant I think I was responsible for in the Department for Education and they really did need to justify how the money was being spent."