Charity Commission publishes Interpal inquiry report

(Immediate Release - 27 February 2009)

The Charity Commission has today published the results of its inquiry into the charity Palestinians Relief and Development Fund (Interpal).

Interpal works in the Occupied Palestinian Territories, where there is considerable instability and where organisations designated as terrorist by the UK government operate. As a result the trustees face particular challenges and should operate robust procedures proportionate to the risks and practical difficulties involved.

The inquiry was opened following a number of allegations made in a BBC Panorama programme.ⁱ The Commission’s Inquiry looked at four key issues:

• whether particular local partners funded by the charity were promoting the ideology or the activities of terrorist organisation(s) and therefore would be inappropriate partners for the charity;
• whether the charity’s membership of the Union for Goodⁱⁱ was appropriate;
• whether one of the trustees had any links to terrorist organisations or undertook activities which might make him unsuitable to be a trustee of the charity, and
• whether the trustees were fulfilling their legal duties and responsibilities, in particular by ensuring that the charity and its assets were protected from any association with terrorist or inappropriate political activities.

The Commission’s inquiry acknowledged that charities providing humanitarian aid in high-risk situations, such as armed or civil conflict and other complex emergencies, make a vital contribution to the communities affected and support people in desperate need.

The Commission’s inquiry confirmed that Interpal did maintain clear financial audit trails in their delivery of aid for humanitarian purposes. (Paragraph 120)

The Commission concluded that it could not verify that the material it examined suggesting certain partner organisations funded by the charity may be promoting terrorist ideology or activities, so the material was of insufficient evidential value to support these allegations. (Paragraphs 59-61)

However, the Inquiry concluded that the charity trustees:

• had not taken sufficiently rigorous steps to investigate allegations about some of their partner organisations, (Paragraphs 49-68)
• had not put in place adequate due diligence and monitoring procedures to be satisfied that these organisations were not promoting terrorist ideologies or activities. Where procedures were in place, they were not sufficient nor fully implemented.(Paragraphs 115-147)
• had not adequately managed the charity’s relationship with the organisation the Union for Good. The Inquiry concluded that the charity’s continued membership of the Union for Good was not appropriate for a number of reasons set out in the report, including the involvement of designated entities in projects co-ordinated through the Union for Good, that designated entities had been amongst the Union for Good’s membership, and that one of the charity’s trustees was closely linked to the organisation. (Paragraphs 69-114)

As a result of the inquiry, the Commission has used its statutory powers to direct Interpal’s trustees to review their due diligence and monitoring procedures relating to their partner organisations, end the charity’s relationship with the Union for Good and ensure that no trustee holds office or has a role within the Union for Good. The Commission will be reviewing with the trustees the implementation of these requirements.

Andrew Hind, Chief Executive of the Charity Commission, said,

“Charities working in high-risk situations make a hugely important contribution to communities in desperate need. The risks and challenges involved in these areas require difficult and often finely-balanced judgements by charity trustees, as well as a greater effort in the development, implementation and monitoring of their humanitarian work.

Even in these difficult areas, trustees must discharge their duty of care to ensure the charity’s work is protected from abuse, and must avoid activities that might put the charity’s assets or reputation at risk.

The Charity Commission’s intervention in this case has demonstrated our commitment to ensuring charity trustees act effectively to manage any potential conflicts of interest and that they do not expose their charity to any undue risk.”

The full Palestinians Relief and Development Fund (Interpal) inquiry report and additional questions and answers are available on the Charity Commission website. 

Notes to Editors

i) BBC Panorama programme Faith, Hate and Charity, broadcast 26th July 2006. See paragraphs 22-23 in the report and the transcript at http://news.bbc.co.uk/1/hi/programmes/panorama/5234586.stm
ii) The Union for Good is an organisation which comprises a number of UK and foreign organisations working with Palestinians and in the Occupied Palestinian Territories. The Union for Good was created as a continuation of a campaign called “101 Days Campaign” which was established in 2001 during the Second Intifada. Its General Secretary is also the Managing Trustee of Interpal. The Union for Good is not a registered charity in the UK and was not the subject of this Inquiry. It is the charity’s relationship with the Union for Good and the trustees’ management and supervision of this, which was an issue for the Inquiry.

1. The Charity Commission is the independent regulator for charitable activity in England and Wales. Copies of the Inquiry report and additional questions and answers are available on the Charity Commission website.
2. Interpal was established in July 1994 and registered as a charity on 11th August 1994. Its registered charity no. is 1040094. Its objects are:

• The provision of aid and assistance, support, guidance and comfort to poor, needy sick children and widows and those suffering or distressed as a consequence of civil or military action or national disasters within its area of benefit, including setting up and maintenance of medical and health centres.
• To relieve the need hardship and distress of persons whose relatives or friends died or who are missing or detained as a consequence of civil or military action and to provide protection and promote good health, both mental and physical, the relief of poverty and sickness, the advancement of education in matters relating to the nature of grieving and bereavement of connected persons.

3. The Commission opened a statutory inquiry under Section 8 of the 1993 Charities Act into the charity Interpal on 13th December 2006. The inquiry was closed on 26th February 2009. The Charity Commission had two previous inquiries into the charity, in 1996 and 2003. Summary details are in the 2009 inquiry report. Section 8 of the Charities Act provides the Commission with a statutory power to institute inquiries into charities. The Commission has a range of powers that are available to it when a Section 8 Inquiry is open, including the power to direct the charity, or its trustees, officers or employees to take a specific action which the Commission considers is expedient in the interests of the charity.

For further information please contact the press office on 020 7674 2332.

PR 11/09