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Kids Company: ex-children's minister raised 'serious concerns' about charity Kids Company: ex-children's minister raised 'serious concerns' about charity
(34 minutes later)
Former children’s minister Tim Loughton has said that he raised “serious concerns” about the awarding of a grant to the London youth work charity, Kids Company, when he was in post. Former children’s minister Tim Loughton has said that he raised “serious concerns” about the awarding of a grant to the London youth work charity Kids Company when he was in post.
Kids Company is said to have told ministers it would be shutting its services on Wednesday evening in the light of new concerns about its financial management.Kids Company is said to have told ministers it would be shutting its services on Wednesday evening in the light of new concerns about its financial management.
Related: Kids Company: Camila Batmanghelidjh's charity to close amid financial concerns
The charity, which received £3m in a government rescue package a week ago, used part of its government grant to pay overdue staff wages, a move reportedly against the conditions of the funding. Kids Company is said to have told ministers that it will now have to close its services for vulnerable youngsters, according to a report on BBC Newsnight.The charity, which received £3m in a government rescue package a week ago, used part of its government grant to pay overdue staff wages, a move reportedly against the conditions of the funding. Kids Company is said to have told ministers that it will now have to close its services for vulnerable youngsters, according to a report on BBC Newsnight.
Loughton told BBC Radio 4’s Today programme that the Department for Education gave the charity the second largest grant he was ever responsible for during his time as children’s minister, between 2010 and 2012.Loughton told BBC Radio 4’s Today programme that the Department for Education gave the charity the second largest grant he was ever responsible for during his time as children’s minister, between 2010 and 2012.
“When they came back to us to ask for more money, assuming it was going to be carried on, I raised serious concerns, as did officials in the Department for Education and advised against paying the grant, because I needed to see what value for money we were giving to the taxpayer and what the actual results were,” said Loughton, the Conservative MP for East Worthing and Shoreham.“When they came back to us to ask for more money, assuming it was going to be carried on, I raised serious concerns, as did officials in the Department for Education and advised against paying the grant, because I needed to see what value for money we were giving to the taxpayer and what the actual results were,” said Loughton, the Conservative MP for East Worthing and Shoreham.
“We know that and when taxpayers’ money is involved in particular we need to know that that money is being spent on the purposes it is intended [for] and we’re seeing real and sustainable results and I was never convinced with that.” “We know that when taxpayers’ money is involved in particular we need to know that that money is being spent on the purposes it is intended [for] and we’re seeing real and sustainable results, and I was never convinced.”
Kids Company told Newsnight that it had indeed used some of the £3m government grant awarded in July to pay staff wages. But it also said speculation about its closure was “both dangerous and irresponsible and places the children we support at great risk”.Kids Company told Newsnight that it had indeed used some of the £3m government grant awarded in July to pay staff wages. But it also said speculation about its closure was “both dangerous and irresponsible and places the children we support at great risk”.
Last month, the charity’s chief executive Camila Batmanghelidjh was forced to stand aside in return for the Cabinet Office funding.Last month, the charity’s chief executive Camila Batmanghelidjh was forced to stand aside in return for the Cabinet Office funding.
The Cabinet Office is understood to be making plans to recover the grant because it believes that the conditions attached to the use of the money were not met.The Cabinet Office is understood to be making plans to recover the grant because it believes that the conditions attached to the use of the money were not met.
Government officials and other charities are reported to have been briefed on Tuesday afternoon about the potential closure of the charity, which supports thousands of children.Government officials and other charities are reported to have been briefed on Tuesday afternoon about the potential closure of the charity, which supports thousands of children.
At one of the charity’s main centres, a facility for children and young people in Camberwell, South London, activities were continuing as normal on Wednesday morning, at least initially.At one of the charity’s main centres, a facility for children and young people in Camberwell, South London, activities were continuing as normal on Wednesday morning, at least initially.
“It’s business as usual,” said a man opening a gate leading to what is officially called the Arches II compound. “The play schemes are still running.” The centre mainly offers support to what Kids Company calls “exceptionally disadvantaged” young people up to the age of 23, many of whom have been involved in gangs or were used as drug couriers.“It’s business as usual,” said a man opening a gate leading to what is officially called the Arches II compound. “The play schemes are still running.” The centre mainly offers support to what Kids Company calls “exceptionally disadvantaged” young people up to the age of 23, many of whom have been involved in gangs or were used as drug couriers.
No staff members arriving wanted to comment, though some appeared visibly upset, and angry at a small gathering of reporters outside the centre. “Well, you’ve done it, you’ve successfully destroyed us,” one young woman shouted.No staff members arriving wanted to comment, though some appeared visibly upset, and angry at a small gathering of reporters outside the centre. “Well, you’ve done it, you’ve successfully destroyed us,” one young woman shouted.
In a joint investigation, Newsnight and BuzzFeed reported on a leaked cache of emails that appears to show that the charity used a substantial portion of its grant from the government to pay staff wages, though it was apparently intended to be used for restructuring and not day-to-day running costs. It is understood staff wages were two days overdue.In a joint investigation, Newsnight and BuzzFeed reported on a leaked cache of emails that appears to show that the charity used a substantial portion of its grant from the government to pay staff wages, though it was apparently intended to be used for restructuring and not day-to-day running costs. It is understood staff wages were two days overdue.
It is not known whether Kids Company was aware that the Cabinet Office might object to the funding being used to pay wages. Around £800,000 was used from the grant in order to pay staff, it was reported.It is not known whether Kids Company was aware that the Cabinet Office might object to the funding being used to pay wages. Around £800,000 was used from the grant in order to pay staff, it was reported.
“Everything has been agreed, we are going ahead with payroll. It will be done ... as soon as the money hits our account,” Batmanghelidjh wrote in an email to staff, according to the BBC. “I am so sorry that the machinery of Whitehall was slower than we would have liked.”“Everything has been agreed, we are going ahead with payroll. It will be done ... as soon as the money hits our account,” Batmanghelidjh wrote in an email to staff, according to the BBC. “I am so sorry that the machinery of Whitehall was slower than we would have liked.”
Separately, police are currently investigating claims that criminal activity, including sexual abuse and the dissemination of indecent images, was rife on its premises, with Kids Company staff alleged to be involved in some cases.Separately, police are currently investigating claims that criminal activity, including sexual abuse and the dissemination of indecent images, was rife on its premises, with Kids Company staff alleged to be involved in some cases.
After police visited the charity’s south London headquarters last week, Batmanghelidjh said she had “a deep sense of shock and sadness ... having just found out that there are a number of allegations made against Kids Company”.After police visited the charity’s south London headquarters last week, Batmanghelidjh said she had “a deep sense of shock and sadness ... having just found out that there are a number of allegations made against Kids Company”.
“In the last 19 years there have been no child protection rulings that have found us falling short of safeguarding the people in our care,” she said in a statement on the charity’s website. “If we had been aware of sexual assaults taking place on our premises we would have reported these to the police and the local safeguarding board.“In the last 19 years there have been no child protection rulings that have found us falling short of safeguarding the people in our care,” she said in a statement on the charity’s website. “If we had been aware of sexual assaults taking place on our premises we would have reported these to the police and the local safeguarding board.
“So you can understand that I am taken aback by allegations which now present themselves, about which I knew nothing.”“So you can understand that I am taken aback by allegations which now present themselves, about which I knew nothing.”
Kids Company, set up by the charismatic Batmanghelidjh in 1996, was known to have the firm support of David Cameron for its work on gang violence and disadvantaged children. Kids Company, set up by the charismatic Batmanghelidjh in 1996, was known to have the firm support of David Cameron for its work on opposing gang violence and supporting disadvantaged children.
But the charity has been beset by financial turmoil following the announcement that the government would not give it its annual £5m grant this year, though it later negotiated a one-off £3m payment, what was called a “transforming and downsizing plan” after Batmanghelidjh said she would resign.But the charity has been beset by financial turmoil following the announcement that the government would not give it its annual £5m grant this year, though it later negotiated a one-off £3m payment, what was called a “transforming and downsizing plan” after Batmanghelidjh said she would resign.
The Cabinet Office’s top official, Richard Heaton, expressed doubts in June about the £3m funding, and wrote to minsters Oliver Letwin and Matthew Hancock seeking a ministerial direction, because although he recognised the good work of the charity, he was concerned the grant “does not represent value for money, in terms of delivering the outcomes for which the department is funded by parliament”.The Cabinet Office’s top official, Richard Heaton, expressed doubts in June about the £3m funding, and wrote to minsters Oliver Letwin and Matthew Hancock seeking a ministerial direction, because although he recognised the good work of the charity, he was concerned the grant “does not represent value for money, in terms of delivering the outcomes for which the department is funded by parliament”.
The ministers said in their reply they believed he should go ahead with the grant, because they judged the charity to have a “realistic prospect of long-term viability so it can continue to deliver for vulnerable young people”. The ministers said in their reply that they believed he should go ahead with the grant, because they judged the charity to have a “realistic prospect of long-term viability so it can continue to deliver for vulnerable young people”.
Speaking to the Today programme, the mayor of London, Boris Johnson, confirmed that City Hall had also previously provided funding for Kids Company and said it was “a great shame” that the charity had fallen on hard times, describing himself as a huge fan of Batmanghelidjh.Speaking to the Today programme, the mayor of London, Boris Johnson, confirmed that City Hall had also previously provided funding for Kids Company and said it was “a great shame” that the charity had fallen on hard times, describing himself as a huge fan of Batmanghelidjh.