06 June 2003
The Scottish Executive is to set up a watchdog to oversee the operation of charities in the wake of controversy over the funding of a cancer research body.
Communities minister Margaret Curran announced the establishment of the Office of the Scottish Charity Regulator (OSCR) as an agency of the Executive.
The initiative has been welcomed by voluntary bodies, though controversy has arisen over the powers of the new regulator. A former minister, Jackie Baillie, is promoting a parliamentary member's bill that would give the OSCR statutory backing and bring it more into line with the Charity Commission for England and Wales.
Changes in charity law were recommended in 2001 by a commission headed by a former president of the Convention of Scottish Local Authorities, Jean McFadden. The Labour-Liberal Democrat coalition in the new Parliament recently committed itself to acting on the proposals.
The need for action was given greater impetus last month when the Edinburgh-based Court of Session froze the bank accounts of Breast Cancer Research (Scotland) and suspended its fundraiser, Tony Freeman, following allegations that millions of pounds were paid to him in commission, with only a small fraction of the donated money passed on to charitable causes.
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