Official Warning issued to trustees over 49 undocumented loans agreed on behalf of Manchester charity

The Charity Commission has concluded its inquiry into the Bersam Trust, issuing three trustees with an Official Warning for placing the charity at risk by borrowing £1.9 million via inadequately documented loans.

The Bersam Trust has objects to raise funds for charitable causes including the support of the Orthodox Jewish religion and education. The charity also leases a building to a faith school and funds some of its support costs. It is based in Salford, Greater Manchester.

The Commission opened an inquiry into the charity in January 2019, due to ongoing concerns about its financial arrangements and governance.

The inquiry has found the trustees, who will receive the warning, oversaw borrowing of £1.9 million, via 49 separate loans, not documented within loan agreements. The loans were taken from various sources such as individuals and other charities.

Many were only agreed orally and whilst there is no evidence money was lost by the charity in this way, the Commission says the trustees exposed the charity to significant and unnecessary risk by their actions.

The Commission also found the charity was administrated in a way that failed to reflect that the school and charity were separate organisations, with one loan secured on the basis that the school achieved a satisfactory Ofsted rating, a matter the charity had no control over and which could have led to significant financial loss to the charity were the school to perform poorly.

The inquiry concluded that the failures in relation to these loans amount to misconduct and/or mismanagement by three of the charity’s trustees. Other actions that led to the Official Warning include their failure to:

• manage conflicts of interest appropriately during meetings, for example a trustee who worked at the school participated in decisions about the charity’s building being leased to the school, without this being identified or managed as a conflict

• hold regular meetings in line with their governing document

• document meetings adequately, even when significant decisions were taken

• follow an agreed action plan to address earlier failings identified by the Commission

Amy Spiller, Head of Investigations at the Charity Commission, said:

Good governance is not a bureaucratic detail, it’s essential in ensuring a charity delivers on its charitable purpose and isn’t exposed to unnecessary risk.

The trustees of The Bersam Trust failed to ensure this and instead, through their lack of financial management and basic governance, agreed a significant number of undocumented loans that risked their charity’s future. Our inquiry has exposed these failures and it’s right the trustees have been issued with an Official Warning requiring them to act to protect their charity. We expect the trustees to comply with these actions.

The regulator has taken the significant step of exercising its power under section 75A of the Charities Act 2011 to issue an Official Warning to three of the trustees, specifying the action they should take to improve the governance and financial practice of the charity. Failure to rectify the failings set out in the Official Warning may lead to further action by the regulator.

The Commission’s inquiry into Bersam Trust has concluded, but it will continue to monitor the charity’s compliance with the actions set out in the Official Warning.

Ends.

Notes to Editors:

  1. The Official Warning was issued to the trustees in place at the charity at the time most of these decisions were taken.
  2. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its purpose is to ensure charity can thrive and inspire trust so that people can improve lives and strengthen society.
  3. Read the inquiry report into the Bersam Trust


E3 Statement on the JCPoA: 12 February 2021

News story

The governments of France, Germany and the United Kingdom respond to Iran’s production of uranium metal.

Statement from the governments of France, Germany and the UK:

We, the governments of France, Germany and the United Kingdom, note with grave concern the recent confirmation by the IAEA that Iran is producing uranium metal in violation of the JCPoA. Under the JCPoA, Iran committed not to engage in producing or acquiring uranium metal or to conduct research and development on uranium metallurgy for 15 years.

Recalling our statement of January 16, we reiterate that Iran has no credible civilian justification for these activities, which are a key step in the development of a nuclear weapon.

We strongly urge Iran to halt these activities without delay and not to take any new non-compliant steps on its nuclear programme. In escalating its non-compliance, Iran is undermining the opportunity for renewed diplomacy to fully realise the objectives of the JCPOA.

Published 12 February 2021



Police to receive £60 million to support COVID-19 response



Contempt of court proceedings to be brought against environmental lawyer

News story

The Solicitor General, the Rt Hon Michael Ellis QC MP, has initiated contempt of court proceedings against Tim Crosland, an environmental lawyer who leaked the Supreme Court’s decision on Heathrow’s third runway.

The Solicitor General, the Rt Hon Michael Ellis QC MP, has initiated contempt of court proceedings against Tim Crosland, an environmental lawyer who leaked the Supreme Court’s decision on Heathrow’s third runway.

On 9 December, in accordance with its usual practice, the Supreme Court circulated its draft judgment on the future of Heathrow Airport to various parties involved in the case including Mr Crosland, an outspoken opponent of Heathrow’s plans. The draft judgment was circulated on a confidential basis and an embargo setting out the need for confidentiality was clearly stated. It was also made clear that breaching the embargo might be treated as a contempt of court.

On 15 December Mr Crosland issued a statement to news wire, Press Association disclosing the Supreme Court’s decision. In his statement, Mr Crosland confirmed that he had deliberately ‘breached the embargo as an act of civil disobedience’.

Following a referral from the Supreme Court, the Solicitor General has instigated contempt of court proceedings against Mr Crosland. In doing so, the Solicitor General acted independently of government and in the public interest.

Commenting on the matter, the Solicitor General the Rt. Hon. Michael Ellis QC MP said:

After careful consideration, I have concluded that in order that the Rule of Law be upheld, contempt of court proceedings should be brought against Tim Crosland. Irrespective of any personal views on any issue there is no excuse for knowingly undermining court processes and proceedings. As proceedings are now underway, it would not be appropriate to comment further.

The case has been referred to the Supreme Court and is now a matter for the Justices of that court.

Note to editors

  1. Contempt of court is punishable by up to 2 years in prison, and/or a fine.

Published 12 February 2021



Human Rights Council: UK statement for the 29th Special Session on Myanmar

Madam President,

The United Kingdom condemns the military coup in Myanmar and the arbitrary detention of members of the democratically elected civilian government and civil society, including President Win Myint and State Counsellor Aung San Suu Kyi. It is essential that Aung San Suu Kyi, Win Myint, and all those arbitrarily detained are released. We must receive assurances of their safety and wellbeing.

We stand with the people of Myanmar who are now bravely exercising their democratic right to protest this coup. Their wishes, and the result of the November 2020 General Election, must be respected.

The human rights situation continues to deteriorate. We are extremely concerned by the reports and images of violence emerging from Myanmar perpetrated by the police and military. The state of emergency imposed by the military should be lifted immediately. All actors must refrain from violence and seek dialogue towards a peaceful resolution.

We continue to closely monitor the situation and call on the military to refrain from obstructing the people’s access to information and communication.

The United Kingdom is clear that the state of emergency and all restrictions on the rights and freedoms of people in Myanmar must be lifted immediately. There must be unobstructed humanitarian access for International NGOs and Civil Society Organisations so that essential aid can reach those that need it.

The events of the past two weeks have shown that it is of the utmost importance that the Special Rapporteur continues to assess the situation of human rights and to provide regular updates. We call on the Secretary General and High Commissioner for Human Rights to continue to give the Special Rapporteur their full support and press Myanmar to allow him access.

We welcome the unanimous statement of the Security Council supporting Myanmar’s democratic transition, and the ASEAN Chair’s statement, which recalls the principles of the ASEAN Charter, such as the rule of law, good governance and democracy. We encourage all partners to work constructively to prevent any further violence and seek a peaceful resolution.

Thank you.