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David Cameron 'mesmerised' by Kids Company boss David Cameron 'mesmerised' by Kids Company boss
(about 1 hour 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 high-profile charity told the BBC's Norman Smith: "We were all over-ridden by Number 10."A senior figure involved in funding talks with the high-profile charity told the BBC's Norman Smith: "We were all over-ridden by Number 10."
BBC Newsnight says Kids Company, which faces financial mismanagement claims, has told the government it will close its services on Wednesday evening.BBC Newsnight says Kids Company, which faces financial mismanagement claims, 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.
Measures are being put in place to support children who use the charity, which supports deprived young people and their families.Measures are being put in place to support children who use the charity, which supports deprived young people and their families.
On its Facebook page, Kids Company criticised the "media frenzy" and said the "collective focus" should be children's welfare.On its Facebook page, Kids Company criticised the "media frenzy" and said the "collective focus" should be children's welfare.
'Glamour''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 (Ms Batmanghelidjh) 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."
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.
Who is Camila Batmanghelidjh?Who is Camila Batmanghelidjh?
Read more: Profile of Camila Batmanghelidjh
A joint investigation by Newsnight and BuzzFeed News last month revealed the £3m 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.A joint investigation by Newsnight and BuzzFeed News last month revealed the £3m 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.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 had been mismanaged and that this had led to government pressure for a restructure.She denied claims the charity had been mismanaged and that this had led to government pressure for a restructure.
It has also been revealed the Cabinet Office's lead official raised concerns that the grant, intended for a "transformation and downsizing plan", would be poor value for money, but was told by ministers to press ahead.It has also been revealed the Cabinet Office's lead official raised concerns that the grant, intended for a "transformation and downsizing plan", would be poor value for money, but was told by ministers to press ahead.
Newsnight policy editor Chris Cook understands attempts are being made to recover the money because the Cabinet Office believes that the conditions attached to the use of the money were not met.Newsnight policy editor Chris Cook understands attempts are being made to recover the money 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.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.
On Tuesday afternoon government officials, charities and local authorities were briefed on the likely impact of of the charity closing its services, he added.On Tuesday afternoon government officials, charities and local authorities were briefed on the likely impact of of the charity closing its services, he added.
Southwark Council said it was "ready to support any vulnerable children and young people in the borough who are affected by the closure of Kids Company".Southwark Council said it was "ready to support any vulnerable children and young people in the borough who are affected by the closure of Kids Company".
London mayor Boris Johnson told the BBC he was a "huge fan" of Ms Batmanghelidjh and that it was "a great shame" the charity "doesn't seem to be working", while Bristol mayor George Ferguson said he was asking for an immediate briefing on the charity's future so a "safety net" could be prepared.London mayor Boris Johnson told the BBC he was a "huge fan" of Ms Batmanghelidjh and that it was "a great shame" the charity "doesn't seem to be working", while Bristol mayor George Ferguson said he was asking for an immediate briefing on the charity's future so a "safety net" could be prepared.
Earlier, former children's minister Tim Loughton said he had raised "serious concerns" over whether funding representing value for money when he was in government.Earlier, 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 told BBC Radio 4's Today programme: "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."He told BBC Radio 4's Today programme: "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."