El Shaddai Charitable Trust Limited

Registered Charity Number 1076768

You can also view the full colour PDF version of the El Shaddai Charitable Trust Limited inquiry report.

This is a statement of results of an inquiry under section 8 of the Charities Act 1993 as amended by the Charities Act 2006 (“the Act”) and published on 1st October 2008.

The Charity

1. El Shaddai Charitable Trust Limited (“the charity”) was registered as a charitable company on 28 July 1999 and is governed by Memorandum and Articles of Association incorporated on 8 October 1998, as amended by special resolution dated 30 April 1999. Its objects are:

• The relief of poverty and sickness of children in India, in particular but without prejudice to the generality of the foregoing, the children of El Shaddai Orphanage;
• The advancement of education of young people in India; and
• The relief of sickness among the population of India by providing or assisting in the provision of healthcare.

2. At present the charity is operating from Wilmslow, Cheshire and is currently furthering its objects through the application of funds to El Shaddai Charitable Trust (“the Goan charity”), a charity registered under the Sub-Registrar of Government of Goa, Mapusa, Bardez, Goa and operating throughout India. At times, the charity and the Goan charity have had charity trustees in common.

3. The charity’s income and expenditure in the financial period ending 31 March 2007 were £487,832 and £527,856 respectively.

Source of Concern

4. On or about 12 September 2006 we received certain allegations from a complainant who was relaying information from others. The allegations, which were about the Goan charity, were to the effect that vulnerable beneficiaries were being abused: girls were being sexually abused and boys subjected to severe corporal punishment. It was also alleged that there had been misapplication of funds and property. One of the founding trustees of the Goan charity, who is an Indian national (“the first founding trustee”), was central to these allegations. He was also a charity trustee of the charity.

5. We had previously received complaints about the governance and administration of the charity and the Goan charity in 2003. On that occasion the complaints were evaluated and it was concluded that they did not give rise to serious regulatory concerns. During a meeting with two of the then charity trustees it was agreed that the charity would benefit from further advice and guidance. As a consequence, the case was referred to our Review Visits Team, which carried out a visit to the charity, reported and made recommendations to the charity.

Commission inquiry

6. The information provided was of a level of detail which made further inquiry necessary. We opened an inquiry on 29 November 2006 in connection with the risks arising to the charity from the child abuse allegations. The allegations about misapplication of funds and property (“the financial allegations”) were examined under a separate case, which was not part of the inquiry.

7. The charity trustees of the charity were not notified of the inquiry at the time as it was felt this might in the particular and unusual circumstances, prejudice an effective investigation.

Issues

8. The Commission’s registration of charities and its powers of investigation and remedy extend only to charities established in England and Wales.  Where compliance issues arise in relation to charities operating overseas, our powers of investigation into the administration of a charity and to act to safeguard charities and their property are effective only within this jurisdiction. Consequently, we may formally exercise our powers only against charities, persons, and property within the jurisdiction and not outside of it.

9. The focus of our concern was, therefore, on the relationship between the charity and the Goan charity. In particular, the emphasis of the inquiry was on the duties and responsibilities of charity trustees, the extent to which it was appropriate to continue to fund the Goan charity in light of the allegations and how the allegations might impact upon the reputation of the charity. We wished to establish whether the charity trustees of the charity were conducting sufficiently rigorous reviews of the charity’s activities and administration and those of the Goan charity in order to satisfy themselves that the ongoing relationship between the charity and the Goan charity was appropriate and in the best interests of the charity.

Timescale of inquiry

10. The inquiry ran from 29 November 2006 to 31 January 2008. We were unable to conclude the inquiry in a shorter timeframe because it was necessary to liaise with, and await clarification from, the Goan Police via a UK law enforcement agency and the Foreign and Commonwealth Office (FCO), to determine the actual position in Goa.

11. We aim to produce a statement of results of an inquiry within three months of the closure of that inquiry. In this instance we acknowledge that we have failed to do so.

Findings

12. On the basis of information/confirmation provided by the charity trustees of the charity and other sources, we found that:

• there was no evidence to substantiate the allegations;
• the Goan Police had no concerns to report about the Goan charity or the first founding trustee; and
• the charity trustees of the charity were taking appropriate steps to improve upon and monitor the activities and administration of the charity, particularly in relation to the development and implementation of child protection policies and procedures and to put in place procedures to regularly review the charity’s relationship with the Goan charity.

Given the jurisdictional limits, we were unable to conduct our own inquiries to verify any of the child abuse allegations and so relied on other agencies to carry this out.

Conduct of inquiry

13. During the inquiry, we liaised with representatives of the FCO and UK law enforcement, who in turn liaised with the Goan Police.

14. We met with the complainant, who provided further information about the financial allegations. This further information was considered separately (see paragraph 6 above).

15. On 18 May 2007 we received confirmation that, as of that date:

• the Goan Police had no concerns to report about the Goan charity; but
• there remained a perception within the locality that abuse of children was taking place.

16. In the course of the inquiry, we sought details of, and commented on, the child protection policies of the charity and the Goan charity. These were being reviewed by an independent consultant hired by the charity.

17. After reviewing the information provided by the charity trustees of the charity we concluded that there were no further regulatory concerns concerning the financial allegations. Consequently, the separate case dealing with the financial allegations was closed on 28 June 2007.

18. In August 2007 further allegations of sexual abuse and misapplication of funds and property were made by a source seemingly independent of the original complainant.

19. At our request, information about the Goan charity’s volunteers was provided by the charity. It was concluded that this information did not represent or give rise to any evidence that might substantiate the child abuse allegations.

20. On 4 December 2007 we met with charity trustees of the charity. The meeting took place in anticipation of their planned trip to India to visit the Goan charity. They were advised of the inquiry and the allegations of abuse and were asked during their visit to identify whether there was any basis to the allegations and how such allegations are normally dealt with. We also used the opportunity of the meeting to follow up on aspects of the closed financial allegations case.

21. On 12 December 2007 we received confirmation that the Goan Police had found nothing untoward with regard to the Goan charity or the first founding trustee concerning the second set of abuse and misapplication allegations.

22. On 9 January 2008 we held a further meeting with the charity trustees of the charity on their return from India. Both the first founding trustee and the other founding trustee of the Goan charity (who is a former charity trustee of the charity) were present. The representatives of the charity and the Goan charity acknowledged that complaints about the activities of the Goan charity are received from time to time. They were aware of the negative perception of the Goan charity in some parts of the local Goan community. Insofar as it was possible to do so, they demonstrated that the Goan charity was acting in compliance with The Goan Children’s Act 2003 and government guidelines. For example, they provided:

• Certificates issued by the Directorate of Women and Child Development of Government of Goa date 19 January 2006 showing that children homes run by the Goan charity are registered under section 6(1) of the Goa Children’s Act 2003 and the Goa Children Home Rules, 2004;
• Orders issued by the same Directorate sanctioning payment of recurring grants towards the payment of grants to the Goan charity; and
• A letter dated 11 September 2007 from the Director of Education addressed to the director of a non-formal school run by the Goan charity in which is expressed appreciation of the work being undertaken at the school.

Conclusions

23. The allegations of child abuse have not been substantiated. The charity trustees of the charity have acted and are acting to improve upon the charity’s policies and procedures so as to facilitate sufficiently rigorous reviews of the charity’s activities and administration and the activities of the Goan charity in order to satisfy themselves that the ongoing relationship between the charity and the Goan charity is appropriate and in the best interests of the charity.

Regulatory action taken

24. We provided regulatory guidance on the need to have in place appropriate policies and procedures relating to the relationship between the charity and the Goan charity. Specifically, the charity was advised that it should have in place mechanisms for monitoring overseas projects funded by the charity and a process whereby the charity’s relationship with the Goan charity is regularly reviewed to ensure that the best interests of the charity are being served. Particular focus was placed on the need for the charity to have in place and be satisfied that the Goan charity has in place appropriate policies and procedures dealing with child protection issues and the identification and management of conflicts of interest.

25. We provided advice and guidance on a range of issues relating to the financial allegations being taken forward separately but parallel to the inquiry.

26. For example, advice was given in relation to a land transaction between the Goan charity and the first founding trustee, the amendment of that charity’s governing document and actual or potential unauthorised trustee benefit. This advice was given on the basis that charity trustees operating in England and Wales must be cognisant of their obligations under the law of England and Wales and, where their charity enters into a relationship with another organisation, subject to a jurisdiction falling outside that of the English courts, that is capable of carrying out the charity’s charitable purposes, they should measure the activities of that overseas organisation and its trustees against the requirements of that law and best practice in addition to satisfying themselves that the overseas organisation in question is operating within the laws of the land in which it is based.

Impact of Commission intervention

27. As a direct result of our intervention, the charity trustees of the charity took steps to review, develop and improve upon policies and procedures designed to ensure that the ongoing relationship between the charity and the Goan charity is appropriate and in the best interests of the charity.

28. Also, as a result of our intervention by way of the separate case dealing with the financial allegations, the charity trustees of the charity ensured that any possible personal benefit derived by the first founder trustee from land transactions referred to above was reversed.  

Resources applied

29. This was a long-running inquiry in connection with allegations of a sensitive nature in an overseas jurisdiction. We adopted a multi-disciplinary team working approach consisting of investigators, lawyers and accountants and, by way of liaison, the FCO and UK law enforcement.

Actions required of the trustees

30. The charity trustees of the charity will:

• continually review the activities and administration of the Goan charity in order to ensure that the relationship between the charity and the Goan charity remains appropriate and in the best interests of the charity;
• provide us with a copy of the independent management consultant’s report on current working practices in the Goan charity, with particular emphasis on its child protection policy, procedures and controls; and
• review, and keep under review, all conflicts of interest.

We will monitor the progress of the charity trustees with regard to these points.

The charity trustees were also advised to seek our authority for the remuneration of a former charity trustee of the charity. They have since done so and authority has been given.

Lessons for other charities

31. Charity trustees are responsible for the overall management and control of the administration of their charity. Their responsibilities extend to ensuring that they consider the safety and protection of beneficiaries of the charity, whether they be in the United Kingdom or overseas, and ensure that such beneficiaries are not harmed in any way through direct or indirect contact with their charity.

32. Charities have a responsibility to ensure that their own reputation, and the good name of ‘charity’ in the public’s perception, is not brought into disrepute by inappropriate activities, or association with inappropriate organisations or individuals.

33. In order to protect beneficiaries and guard against a charity’s reputation, and the good name of ‘charity’, being brought into disrepute, charities should put in place appropriate and effective controls to monitor their own governance and activities and those of partner organisations, so as to identify areas of concern, should they arise, at an early stage and/or be able to deal with such concerns in an effective manner.

Issue	Charity Commission guidance
Roles and responsibilities of charity trustees.	CC3 The Essential Trustee: What you need to know
Monitoring overseas projects and partners	Charities Working Internationally
Child protection	Safeguarding Children: Protecting children in your organisation
Identifying and managing conflicts of interest	A Guide To Conflicts Of Interest For Charity Trustees

Date of Publication: 01/10/2008