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Kids Company: Tory donor involved in campaign to 'persuade ministers to give charity £3m grant' Kids Company: Tory donor involved in campaign to 'persuade ministers to give charity £3m grant'
(about 4 hours later)
A multimillionaire Tory donor was involved in the campaign to persuade ministers to give a £3m grant to the troubled charity Kids Company against the advice of civil servants, The Independent has learnt.A multimillionaire Tory donor was involved in the campaign to persuade ministers to give a £3m grant to the troubled charity Kids Company against the advice of civil servants, The Independent has learnt.
James Lupton, who is the Conservatives’ co-treasurer and donated more than £1m to the party last year, is understood to have met with ministers on behalf of the charity as its financial woes deepened.James Lupton, who is the Conservatives’ co-treasurer and donated more than £1m to the party last year, is understood to have met with ministers on behalf of the charity as its financial woes deepened.
Following the discussions, Cabinet Office ministers Oliver Letwin and Matthew Hancock took the controversial decision to overrule their most senior civil servants and “direct” that they award Kids Company a £3m restructuring grant. But the charity announced its closure on Wednesday after finding itself short of funds amid claims of financial mismanagement.Following the discussions, Cabinet Office ministers Oliver Letwin and Matthew Hancock took the controversial decision to overrule their most senior civil servants and “direct” that they award Kids Company a £3m restructuring grant. But the charity announced its closure on Wednesday after finding itself short of funds amid claims of financial mismanagement.
Labour has demanded that the Cabinet Secretary, Sir Jeremy Heywood, investigate Mr Lupton’s involvement “as a matter of urgency”.Labour has demanded that the Cabinet Secretary, Sir Jeremy Heywood, investigate Mr Lupton’s involvement “as a matter of urgency”.
Tory donor James LuptonTory donor James Lupton
Mr Lupton, who is widely tipped to be made a Tory peer in the next few weeks, has long been a supporter of the charity. He was named as a major donor in 2012 and at the end of last year was singled out, along with the author J K Rowling, as one of Kids Company’s five “heroes of the year”.Mr Lupton, who is widely tipped to be made a Tory peer in the next few weeks, has long been a supporter of the charity. He was named as a major donor in 2012 and at the end of last year was singled out, along with the author J K Rowling, as one of Kids Company’s five “heroes of the year”.
It was around this time that discussions were taking place with the Cabinet Office ministers which resulted in Kids Company being awarded the grant against the wishes of senior figures in the Department for Education.It was around this time that discussions were taking place with the Cabinet Office ministers which resulted in Kids Company being awarded the grant against the wishes of senior figures in the Department for Education.
There is no suggestion that Mr Lupton acted improperly and he himself is understood to have been one of the donors prepared to match any money the Government contributed to rescue the charity.There is no suggestion that Mr Lupton acted improperly and he himself is understood to have been one of the donors prepared to match any money the Government contributed to rescue the charity.
But the financier’s access to senior ministers raises serious questions for the Conservatives over the extent to which donors are able to influence Government policy. It is highly unusual for civil servants to seek written direction from ministers over a policy decision as they did in the case of Kids Company and the process is expected to be subject to an inquiry by the Public Accounts Committee.But the financier’s access to senior ministers raises serious questions for the Conservatives over the extent to which donors are able to influence Government policy. It is highly unusual for civil servants to seek written direction from ministers over a policy decision as they did in the case of Kids Company and the process is expected to be subject to an inquiry by the Public Accounts Committee.
One source said: “Lupton has definitely spoken to ministers on behalf of Kids Company in the past six months.”One source said: “Lupton has definitely spoken to ministers on behalf of Kids Company in the past six months.”
Another source added that Mr Lutpon was “part of” the campaign to persuade Government to carry on funding the charity saying he had been a “fantastic supporter”.Another source added that Mr Lutpon was “part of” the campaign to persuade Government to carry on funding the charity saying he had been a “fantastic supporter”.
The Independent has attempted to speak to Mr Lupton through the global investment bank Greenhill where he is chairman, but were unable to contact him.The Independent has attempted to speak to Mr Lupton through the global investment bank Greenhill where he is chairman, but were unable to contact him.
John Ashworth, Labour’s Shadow Cabinet Office minister said the revelation raised serious questions about the processes involved in awarding money to Kids Company.John Ashworth, Labour’s Shadow Cabinet Office minister said the revelation raised serious questions about the processes involved in awarding money to Kids Company.
“This is something that Jeremy Heywood needs to urgently investigate. We need to know exactly what influence this Tory donor has had over the decision.”“This is something that Jeremy Heywood needs to urgently investigate. We need to know exactly what influence this Tory donor has had over the decision.”
Jon Ashworth canvassing in Lowestoft in 2014Jon Ashworth canvassing in Lowestoft in 2014
A Cabinet Office spokesman said they would never comment on individuals who held meeting with ministers.A Cabinet Office spokesman said they would never comment on individuals who held meeting with ministers.
The development comes as officials held a crisis meeting to draw up emergency plans to provide support for children after the sudden closure of the south London-based charity.The development comes as officials held a crisis meeting to draw up emergency plans to provide support for children after the sudden closure of the south London-based charity.
The Charity Commission, the sector watchdog, said it was contacted last month by former Kids Company staff who raised concerns about how it was being run. “We met former employees on 16 July to discuss specific concerns about alleged inappropriate spending, breaches of financial controls and concerns about the viability of the organisation,” the commission said.The Charity Commission, the sector watchdog, said it was contacted last month by former Kids Company staff who raised concerns about how it was being run. “We met former employees on 16 July to discuss specific concerns about alleged inappropriate spending, breaches of financial controls and concerns about the viability of the organisation,” the commission said.
It add it had requested a series of changes and these were being processed when the closure was announced.It add it had requested a series of changes and these were being processed when the closure was announced.
“We notified the charity of the complaints on 17 July and met with representatives on 21 July. At that meeting we insisted on a number of steps being taken, including that the charity instigate an immediate independent examination into the allegations made.”“We notified the charity of the complaints on 17 July and met with representatives on 21 July. At that meeting we insisted on a number of steps being taken, including that the charity instigate an immediate independent examination into the allegations made.”
Several thousand vulnerable children and young people received support from Kids Company, and there are fears many could suffer unless plans are put in place to continue the services. The charity worked with children in London, Bristol and Liverpool, and councils, the Government and charities have all said the children’s welfare is the top priority.Several thousand vulnerable children and young people received support from Kids Company, and there are fears many could suffer unless plans are put in place to continue the services. The charity worked with children in London, Bristol and Liverpool, and councils, the Government and charities have all said the children’s welfare is the top priority.
But in a round of interviews the charity’s founder Camila Batmanghelidjh lashed out at ministers, civil servants and the media, claiming the organisation was the victim of a “trial by media”.But in a round of interviews the charity’s founder Camila Batmanghelidjh lashed out at ministers, civil servants and the media, claiming the organisation was the victim of a “trial by media”.
She said claims of financial mismanagement were unfounded and condemned David Cameron’s administration for cutting off funds. She told the BBC Radio 4’s Today programme: “If we were so dysfunctional, why did the Government hand over £7m of taxpayers’ money?”She said claims of financial mismanagement were unfounded and condemned David Cameron’s administration for cutting off funds. She told the BBC Radio 4’s Today programme: “If we were so dysfunctional, why did the Government hand over £7m of taxpayers’ money?”
She also said the former Tory minister Tim Loughton was “disingenuous” in claiming there were no measurable results for Kids Company’s work. “The problem is that we are not dealing with facts. It’s all rumours and conjectures. If anyone sat with me and looked at the facts, with evidence, it would be very different.”She also said the former Tory minister Tim Loughton was “disingenuous” in claiming there were no measurable results for Kids Company’s work. “The problem is that we are not dealing with facts. It’s all rumours and conjectures. If anyone sat with me and looked at the facts, with evidence, it would be very different.”
She continued: “It’s trial by media. We have become a football for the media and the civil servants over the summer. It’s so destructive to these children.”She continued: “It’s trial by media. We have become a football for the media and the civil servants over the summer. It’s so destructive to these children.”
The charity had a string of celebrity backers including Coldplay and artist Damien Hirst, and was lauded by Mr Cameron as the embodiment of the Big Society. But ministers and civil servants said its sudden collapse followed years of questions being raised over its financial management.The charity had a string of celebrity backers including Coldplay and artist Damien Hirst, and was lauded by Mr Cameron as the embodiment of the Big Society. But ministers and civil servants said its sudden collapse followed years of questions being raised over its financial management.
According to reports, Justice Minister Michael Gove wanted to stop funding the charity while he was Education Secretary, but was overruled by Mr Cameron.According to reports, Justice Minister Michael Gove wanted to stop funding the charity while he was Education Secretary, but was overruled by Mr Cameron.
Alan Yentob, who is both creative director at the BBC and chairman of trustees at Kids Company, insisted there was no conflict of interest when he spoke to Newsnight journalists about their investigation into the charity. He has also said that claims of financial mismanagement were “complete rubbish”.
James Lupton became deputy chairman of Barings in 1995, having working at the merchant bank for almost two decades.James Lupton became deputy chairman of Barings in 1995, having working at the merchant bank for almost two decades.
Three years later, the Oxford graduate co-founded Greenhill & Co, an international corporate advisory firm listed on the New York Stock Exchange, and now has an estimated fortune of £130m.Three years later, the Oxford graduate co-founded Greenhill & Co, an international corporate advisory firm listed on the New York Stock Exchange, and now has an estimated fortune of £130m.
He is a trustee of the British Museum and serves on the international advisory board of the Global Leadership Foundation, set up by former South African President, F W de Klerk. His interests include “opera, skiing, shooting, collecting art, music and family”, according to the British Museum’s website. He married Béatrice in 1983 and they have four children.He is a trustee of the British Museum and serves on the international advisory board of the Global Leadership Foundation, set up by former South African President, F W de Klerk. His interests include “opera, skiing, shooting, collecting art, music and family”, according to the British Museum’s website. He married Béatrice in 1983 and they have four children.
Mr Lupton was awarded a CBE in the 2012 New Year Honours’ list for services to the arts and philanthropy. The Tory party co-treasurer, who has donated £2.5m to the party, is also reportedly now in line for a peerage.Mr Lupton was awarded a CBE in the 2012 New Year Honours’ list for services to the arts and philanthropy. The Tory party co-treasurer, who has donated £2.5m to the party, is also reportedly now in line for a peerage.
He is said to have hosted a table at the Black and White Ball – a major Tory fundraiser – in February and to have donated a week-long trip for 24 people to his £56m estate on Majorca.He is said to have hosted a table at the Black and White Ball – a major Tory fundraiser – in February and to have donated a week-long trip for 24 people to his £56m estate on Majorca.