One of Britain’s largest charities, Muslim Aid, is at the center of a scandal.
A recent investigation by the U.K. Charity Commission revealed that former trustees seriously mismanaged the organization’s resources. According to The Times, Muslim Aid has an annual budget of £34 million.
“The concerns were originally dealt with as part of a regulatory compliance case,” the commission said in a statement. “But the commission’s engagement escalated when the charity’s own reassurances to the regulator served instead to highlight the sheer scale of concerns about the charity’s financial management, specifically its due diligence, monitoring, and oversight of its field offices.”
According to nonprofit news source Third Sector, the commission was also concerned that the charity was unintentionally funding a terrorist group due to a lack of proper checks. However, further inquiry proved that wasn’t the case.
The report concluded:
“The then board of trustees fell short of the standards required and expected, particularly of a large, well-known and trusted charity with substantial operations and reach.
“The then board of trustees did not meet with their duties to act with reasonable care and skill and fell short of their responsibilities under charity law.”
The report did note, however, that significant improvements have been made ever since Jehangir Malik was appointed CEO in September 2016. In a statement, Malik reassured the public that the charity is back on the right track:
“After a challenging period, the board and the senior leadership team have initiated a new governance structure that has put in place model checks and balances to ensure the highest of professional operating standards.
“Muslim Aid has a 30-year legacy of excellent field work, serving humanity. This is a strong foundation and the improvements put in place, under the supervision of this inquiry process, will ensure that the future of the charity is robust.
“Muslim Aid has emerged a more transparent organization, more fit for purpose for the current strategic requirements of donors and beneficiaries alike. Muslim Aid is entering an exciting new phase.”