Families call for inquiry into residential care charity that ran up 1.6m debt

"A group of families have called for an urgent inquiry into a charity caring for their highly vulnerable disabled relatives which is under threat of closure after running up debts of 1.6m in unpaid taxes and paying 1m to one of its own trustees. Earlier this month, a judge gave the charity, William Blake House, just weeks to pay off its debts to HMRC or face a winding up order."

"They have questioned why the charity has paid more than 800,000 in strategy fees and 240,000 in consultancy fees to a company owned by the charity's chair, despite its deteriorating finances. It now faces an investigation by the Charity Commission, which told the Guardian it had opened a regulatory compliance case into potential governance concerns. West Northamptonshire council said it was in ongoing discussions with the charity over what it called serious governance and financial issues."

William Blake House owes 1.6m in unpaid taxes and has paid 1m to one of its trustees while auditors repeatedly questioned its viability. A judge has given the charity weeks to settle debts with HMRC or face a winding-up order. Families report that 22 adult residents with learning disabilities, autism and complex needs require continuous care and that their wellbeing is now at risk. Councils and the NHS spend about 3m annually on placements. Payments of over 800,000 in strategy fees and 240,000 in consultancy fees were made to a company owned by the charity’s chair. The Charity Commission and the local council have opened inquiries into governance and financial concerns.

Read at www.theguardian.com