In a damning report on the watchdog’s regulatory effectiveness and leadership, the PAC said the Charity Commission lacked a coherent strategy, adding that it had little confidence in the commission’s ability to address its problems.
The Charity Commission came under fire from the PAC last year for its response to the Cup Trust charity, which the MPs said been set up as a tax avoidance vehicle.
And the commission’s response to the Afghan Heroes charity, which is also alleged to abused its charitable status, was criticised in today’s report as slow and inefficient.
‘The commission too willingly accepts what charities tell it when it is investigating alleged abuses,’ said PAC chair Margaret Hodge.
‘It too often fails to verify of challenge the claims made. Some of the most serious cases of abuse have not been properly investigated. It has been too slow in removing or suspending trustees and in pursuing investigations.’
She said the new chief executive currently being recruited by the commission would need to bring in ‘radical change’ in order to restore confidence in the regulator’s credibility.
But in a detailed rebuttal, the Charity Commission said it was already addressing many of the problems highlighted by the PAC.
‘I completely reject the suggestion that the commission lacks a coherent strategy,’ said Charity Commission chair William Shawcross.
‘I am confident that we are taking the commission in the right direction. We recognise that we must strengthen our approach to identifying and tackling the most serious abuses of charity – and we have asked for new powers to enable us to do this. We also have to ensure that the few cases of serious mismanagement and abuse do not undermine public trust and confidence in charities more widely. It is a shame the committee hasn't recognised this progress.’
In terms of the two specific cases cited by the PAC, the Charity Commission denied that their actions had been slow or feeble. Further developments in the Afghan Heroes case would be announced shortly, it said.
