The Charity Commission has launched a statutory inquiry into Quba Charity following concerns around potential misuse of funds.
Quba Charity , formally named Specialist Sports Foundation, was set up to promote community participation in healthy recreation and sports for the benefit of the community of Derby. Its purposes also include providing facilities for multi-sport sessions.
The charity regulator for England and Wales opened an inquiry after finding connections between Quba Charity and international aid charity Quba Trust that raise regulatory concerns.
In December in a separate inquiry the Commission found misconduct and/or mismanagement at registered charity Quba Trust, resulting in the disqualification of three trustees. As two of these trustees have also been involved with Quba Charity, the Commission is concerned about the extent of their involvement and the potential influence they may exert on Quba Charity.
Through its preliminary assessment, the regulator has identified concerns about close similarities between the Quba Charity and Quba Trust's branding, social media and website content. This includes information on Quba Charity's website about overseas projects carrying Quba Trust's name and logo. The inquiry will seek to establish if Quba Charity has been acting outside of its purposes - which, if found, would be considered a misuse of funds and a breach of trust.
The Commission has used its regulatory powers to prevent the trustees of Quba Charity from transferring charity funds or assets outside of the UK, from fundraising and appealing for funds. The Commission has also exercised its information gathering powers and directed Quba Charity's current and former trustees to answer questions and provide evidence to the inquiry.
The inquiry has been opened into Quba Charity to investigate and establish facts. It will:
consider the conduct of the trustees and their compliance with legal duties and responsibilities
determine if the charity's funds have been expended solely for charitable purposes in line with its stated objects
The Commission may extend the scope of the inquiry if additional regulatory issues emerge.
It is the Commission's policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.
