The Charity Commission has opened a statutory inquiry into the Suyuti Institute over concerns that the trustees may have failed to address the financial risks involved in taking over a private trust
The Birmingham-based charity has objects to advance the Islamic faith through education and distributing literature. Concerns were raised with the Commission about a lecture given by a trustee of the charity and whether the content of that speech was appropriate and furthered the charity’s purposes.
As a result of these concerns the regulator conducted a visit and books and records inspection. The Commission learnt that the charity had taken over a private trust linked to one of the trustee’s late mother, which included all of its assets and liabilities.
The Commission says it has specific concerns relating to the management of conflicts of interest and whether the trustees have acted in the best interests of the charity to accept the assets and liabilities of the private trust. The Commission is also concerned that this decision has exposed the charity to significant financial risk.
The Commission has now issued an order restricting transactions from the charity’s bank account and directed the trustees to provide information and documents to the Commission.
The inquiry will examine the administration, governance and management of the charity by the trustees, and their financial management in relation to the decision about the private trust. The Commission says it will report on its findings in due course.
