Police find no fraud at charity forced to shut down

But confirmation that there will be no criminal prosecution comes too late to save the Barnsley Black and Ethnic Minority Initiative (BBEMI), which wound up earlier this year after its funding was withdrawn.

The police were initially called in by Barnsley Council, which is understood to have given the charity £100,000 a year plus administrative support, after complaints were apparently made about its finances.

Raids were carried out at the offices of BBEMI, in the town’s newly-built Core complex, and equipment and documents were seized by a CID team which has spent nine months trawling the organisation’s records.

Detectives said the inquiry’s length demonstrated its exhaustive nature, but admitted they had found “no significant evidence” to back up the original allegation of “financial misconduct and mismanagement.”

DC Dean Hamby, of Barnsley CID, which carried out the investigation said: “We have been through all of the financial records and other documentation which relates to the financial operation of the charity.

“That involved looking at thousands and thousands of documents, which was extremely time consuming, and having done that, we are satisified that there are no criminal cases to take forward against anyone.”

It is understood that the charity’s three most senior directors, chairman Vladimer Sanadze, treasurer Muhammed Rafiq and secretary Naeem Jarral were all interviewed by detectives.

Police said it had been alleged by complainants that the directors had been using the organisation’s funds to “financially benefit themselves” but there was “no evidence to substantiate that”.

BBEMI was registered with the Charity Commission in 2008 but has existed as a company for significantly longer.

According to its website, which is still active, it existed “to promote good race relations and racial harmony amongst Black and Minority Ethnics (BME) and the wider community of Barnsley”.

It’s mission statement said it aimed “to ensure the full involvement of Barnsley’s Black and minority ethnic community in the social and economic regeneration of Barnsley, enabling them to realise their full potential in employment, education, health, social, cultural, and or any other interests and or opportunities appropriate to the needs of Barnsley’s Black and minority ethnic community”.

The police said the investigation would now be passed back to Barnsley Council and the Charity Commission, which has been running its own examination into BBEMI.

Accounts filed with the Charity Commission show that the organisation had around £466,000 in income in 2009 and spending of around £450,000. The following year income was £411,000 with spending at £390,000.

Returns for 2011 which should have been submitted on March 31 have not been filed and a spokesman for the commission said it was “aware” of the police investigation and staff were now considering what, if any, regulatory action would be appropriate in the case.

Barnsley Council said it would now look to “resolve any outstanding financial issues” between the authority and what remains of the charity in consultation with liquidators appointed to deal with its winding-up.

It is not clear whether the decision to remove council funding was the cause of the charity’s collapse or whether outside factors were also involved in the decision to end its operations in April.

A council spokesman said: “The council’s position is not affected by any decision the police may make regarding their investigation.

“A range of services continue to be provided to black and ethnic minority communities in Barnsley and, where appropriate, these are being commissioned from other providers.

“Barnsley is working towards the establishment of a race equality forum as a means of engaging with the many and varied black and ethnic minority communities in the borough.”

None of BBEMI’s former directors or staff could be contacted for comment on the police decision.

[email protected]