Kids Company founder Camila Batmanghelidjh has accused “malicious” civil servants of helping to bring down the charity.
During a stormy appearance before MPs, the controversial charity boss denied that the organisation had been badly run.
She said that it had only been forced to fold after details were leaked that Scotland Yard had launched in investigation into historical sexual abuse at the charity.
Appearing before the Commons Public Administration and Constitutional Affairs Committee, she said the leak - just hours after they received a £3 million Government grant - was “suspicious”.
“Only our finance person and the Cabinet Office knew that the money had hit our account. Suddenly out of the blue we get allegations that we don’t even know relate to sexual abuse,” she said.
“Within hours, it was all over the BBC and news outlets that these related to allegedly sexual abuse against children by Kids Company. That was the kiss of death for a charity dealing with children.”
She added: “I have incredible nervousness about the type of briefings that have been flying around between Government and elements of the media. I think that democracy of this country is compromised by behaviours like this.”
During a three-hour long hearing, Ms Batmanghelidjh and the chairman of the trustees, BBC creative director Alan Yentob, faced an intense grilling by MPs over the organisation’s use of public money.
In a series of heated exchanges, Ms Batmanghelidjh repeatedly denied Kids Company had been a failing organisation and hit out at officials, who she said, had sought to undermine it.
“Some civil servants have been absolutely malicious and unprofessional and have behaved in ways that isn’t respectful of a democracy and you need to look into this,” she said.
Challenged by committee chairman Bernard Jenkin as to what evidence she had for her allegations, she replied: “I will produce it.”