Charity Commission finally publishes report on its inquiry into Afghan Heroes

1. Today (25 March 2021) the Charity Commission has finally published a report on its statutory inquiry into military charity Afghan Heroes.
2. Here’s the press release (“Charity for veterans wound up after serious mismanagement by trustees”): https://www.gov.uk/government/news/charity-for-veterans-wound-up-after-serious-mismanagement-by-trustees.
3. I first wrote about Afghan Heroes and its rip-off professional fundraiser Prize Promotions Limited on 6 January 2014.

PRCA Public Affairs Board responds to Cameron’s lobbying for Greensill

1. On 23 March 2021, the Daily Mail reported the latest on former prime minister David Cameron’s lobbying for Greensill (“How David Cameron ducked signing list of lobbyists”).
2. There the newspaper quotes Liam Herbert, chair of the PRCA Public Affairs Board (PAB), which styles itself as “the voice of the public affairs and lobbying industry”. Mr Herbert told the Mail: “Transparency and disclosure are vital. We would strongly encourage unregulated lobbyists to embrace rigorous professional standards and to sign up to an independent and enforceable code of conduct.”
3. Nevertheless I’ve shown both the PAB and its system of self-regulation for lobbyists lack credibility, given how it handled my complaint about the conduct of ex-lobbyist Paul Bristow MP (see 5 November 2020 post). As you can see, back then I asked Mr Herbert for comment, but the PAB chair didn’t respond to emails.

Why did Tracey Crouch MP resign as a trustee of Made By Sport?

1. On 1 February 2021, former sports minister Tracey Crouch MP stepped down as a trustee of new charity Made By Sport.
2. The MP describes Made By Sport thus on the register of MPs’ financial interests: “an organisation running a four year campaign that champions the power of sport to change lives in disadvantaged communities”.
3. The charity is chaired by Justin King, the former chief exec of supermarket group Sainsbury’s. Among his current roles, Mr King is an adviser to Sazka, the Czech firm vying to win the National Lottery franchise.
4. Let’s recall the circumstances around Ms Crouch’s resignation as sports minister on 1 November 2018 (see 19 May 2019 post). Back then the Tory MP lambasted the government for delaying until October 2019 reduction of the maximum stake on fixed-odds betting terminals (FOBTs) from £100 to £2. (In fact, the stake cut on FOBTs came into effect on 1 April 2019.) Ms Crouch was widely hailed at the time for her perceived principled resignation.
5. The ex-sports minister’s illness is a matter of public record, of course. Nevertheless the register of MPs’ financial interests shows Ms Crouch is continuing in other outside roles. So why did she step down as a trustee of Made By Sport?
6. It’s reasonable to ask whether the MP’s decision to quit was in any way related to Made By Sport’s recent decision to accept a large donation from gambling firm Flutter Entertainment PLC.
7. As part of its response to the COVID-19 crisis, Made By Sport has launched its Clubs in Crisis fund, which will “provide thousands of grants for grassroots sports clubs across the UK”. Up steps Flutter, donating £4.79m to the charity’s new fund via its pre-existing Cash4Clubs scheme.
8. By accepting Flutter’s donation and working together so publicly, Made By Sport helps to promote gambling. What’s more, the charity is helping to perpetuate the problematic relationship between sport and gambling.
9. When asked for comment, Sophie Mason, chief exec of Made By Sport, said in a written statement: “This donation from Cash4Clubs to Made By Sport’s ‘Clubs in Crisis’ fund will provide grants to some of the smallest organisations playing the biggest role in helping communities back on their feet as grassroots sport resumes around the country.
10. For many clubs, these grants will be the difference between permanent closure and the chance to continue their great work improving young people’s lives.
11. This is not a sponsorship deal and it would be wrong to describe it as promoting gambling. There is no advertising of any brands in any external communications and at no point will those attending the sports clubs be exposed to any promotion of gambling.
12. We can confirm Tracey Crouch MP regretfully resigned from the board of Made By Sport in late January as part of a paring back of her external parliamentary commitments and we are extremely grateful for all of her support.”
13. Ms Crouch, meanwhile, didn’t respond to requests for comment.

Major Tory donor’s charity that employed Sir John Hayes MP spent £25k on Christmas party which raised £25k

1. From 5 January 2019 until 30 June 2019, senior Tory MP Sir John Hayes was “non-executive director” to Esharelife Foundation, a grant-making charity set up and run by Dr Maurizio Bragagni, a major Tory donor. Sir John was paid £6k per quarter to “promote Esharelife’s charitable work”, which required “an estimated maximum of 1.5 days per month” of the MP for South Holland and The Deepings’ time.
2. On 8 April 2019, I revealed the pre-existing association between former transport minister Sir John and Dr Bragagni – a link seemingly overlooked by the Advisory Committee on Business Appointments (ACOBA) when it rubber-stamped the MP’s other job at the charity.
3. Esharelife has filed its first set of accounts, for the period 24 April 2019 to 31 December 2019. These show income of £50.50k, and total expenditure of £25.66k.
4. The charity spent £25k holding a Christmas party in November 2019 – which raised roughly the same amount! In other words, the party actually raised nothing for Esharelife after costs.
5. Why did the charity spend so much on its Christmas party?
6. What’s more, related party Tratos (UK) Limited donated the £25k Esharelife used for its Christmas bash: Italian Dr Bragagni is chair and chief executive of Tratos (UK) Limited, the UK arm of his family’s global cable-manufacturing business, Tratos Group.
7. Esharelife spent nothing on charitable activities during the reporting period. However, a £25k donation to AVSI on 11 May 2020 is disclosed as a post balance sheet event. (AVSI is an Italian non-profit organization working in international development, slogan: “People for development”.)
8. Given the costs incurred by the Christmas party and its fundraising outcome, why didn’t Tratos (UK) Limited simply make a donation of £25k to AVSI directly? Not as much fun without a party, I agree. But was the party really necessary, especially one so costly?
9. The reporting period includes Sir John’s second quarter of working for Esharelife. Nevertheless the accounts say nothing about the MP’s role, let alone disclose any payment to him. Why?
10. There’s another problem with Sir John’s involvement. Remember the charity spent nothing on charitable activities during the reporting period. Yet the senior Tory MP “promoted Esharelife’s charitable work”, according to his disclosures on the register of MPs’ financial interests!
11. Finally, why did Esharelife even pay Sir John? His role could have been unpaid, allowing more money to reach those in whose name the charity raises funds. The MP’s paid role risks undermining trust and confidence in Esharelife.
12. There’s no suggestion that anyone has done anything illegal.
13. Sir John is chair of the self-styled Common Sense Group of Tory MPs, one of whose recent activities has been to loudly question the charitable status of organisations such as the National Trust and Barnardo’s. The Common Sense Group might want to turn its attention to another charity somewhat closer to home.
14. Dr Bragagni clarified the arrangements around the Esharelife Christmas party, but didn’t respond to further requests for comment. Sir John didn’t respond to requests for comment.

The PM, Daylesford and Hawthorn Advisors

1. Today (5 March 2021) the first four pages of the Daily Mail newspaper have more revelations about prime minister Boris Johnson and girlfriend Carrie Symonds, and their life in Downing Street.
2. The headline across p2-3 is “Takeaways for Boris and Carrie from UK’s poshest farm shop… costing £12 500”. The “UK’s poshest farm shop” is one of a range of shops operated by Daylesford Organic Limited (“Daylesford”).
3. Daylesford is owned by its founder, Lady Bamford, who is married to JCB magnate Lord Bamford. The billionaire peer is a major Tory donor.
4. Ruth Kennedy is a director of Daylesford, according to Companies House records.
5. On 27 January 2021, I revealed that Ms Kennedy, also known as Lady Dundas, owns Ben Elliot’s Hawthorn shares in a trust.
6. Mr Elliot, co-chair of the Conservative Party, is co-founder of Hawthorn Advisors, the well-connected, though opaque, political lobbyist.
7. Ms Kennedy appeared on the Hawthorn website as a “board advisor”, but then vanished (see 27 January 2021 post).
8. On 8 July 2020, the Daily Mirror newspaper quoted the Conservative Party: “Ben Elliot has nothing to do with the running of Hawthorn or its clients.”
9. As the owner of Mr Elliot’s Hawthorn shares in a trust, Ms Kennedy is acting in his interest with his authority. In addition, she is or was a “board advisor”.
10. Mr Elliot is or was therefore hardly uninvolved at Hawthorn while Ms Kennedy is or was a “board advisor”.
11. As I wrote on 27 January 2021, none of Ms Kennedy, John Evans (co-founder and chief executive of Hawthorn) or the Tory party responded to requests for comment.

Big-name celebrities promote Heineken to under-18s on social media

1. The Portman Group, which describes itself on its website as the “alcohol social responsibility body and regulator of alcohol marketing in the UK”, says its members are “committed” to promoting alcohol only to those aged 18 and over (see 13 May 2020 post).
2. Heineken, a Portman Group member, proclaims in its UK Twitter biography: “Our content shouldn’t be shared with anyone under the age of 18.” (screen shot in Figure 1)

Figure 1. Heineken UK Twitter biography at 9 February 2021

3. Meanwhile, two big-name celebrities, Eamonn Holmes and Denise Van Outen, separately promote Heineken on the social media platform. Both are TV stars whose programmes are for families. Therefore, under-18s will follow both on Twitter.
4. It’s bad enough both celebrities promote Heineken to under-18s this way.
5. Worse, Mr Holmes failed to label his posts as ads. In other words, his tweets were undisclosed marketing communications from the alcohol company (see 14 October 2020 post).
6. Further, I don’t believe Ms Van Outen made very clear her tweet dated 2 February 2021 was an ad (screen shot in Figure 2).

Figure 2. Denise Van Outen: tweet about Heineken dated 2 February 2021

7. Yes, the star says she’s “teamed up with” Heineken as part of its “#brewinggoodcheer” campaign. Nevertheless Ms Van Outen claims to be “celebrating the great British pub”, which is obviously not specific to Heineken. In other words, her tweet is ambiguous.
8. Something that is clear, though: Heineken’s exhortation for its content not to be shared with under-18s is meaningless.
9. Heineken didn’t respond to requests for comment.

Civil Society reports my Ian Karet story

1. On 3 March 2021, Civil Society reported my Ian Karet story (see previous post).
2. Here is its report (“Commission’s interim chair’s charity had to resubmit accounts”): https://www.civilsociety.co.uk/news/commission-s-interim-chair-s-charity-resubmit-accounts.html.

New Charity Commission chair fails to lead by example on charity transparency and accountability

1. On 26 February 2021, the Charity Commission announced the appointment of Ian Karet as interim chair. A solicitor and a partner of law firm Linklaters LLP, Mr Karet has been a member of the charity regulator’s board since January 2019.
2. The interim chair is a trustee of charity Nathan Karet Charitable Trust (“the charity”), according to the commission register of board members’ interests 2021 (screen shot in Figure 1).

Figure 1. Register of board members’ interests 2021: Charity Commission website at 27 February 2021

3. I emailed Mr Karet for comment on the following five issues:
4. “First, why is the disclosure so poor in the charity’s latest accounts, made up to 5 April 2020?
5. For a start, the trustees’ annual report omits to mention how exactly the charity raises funds. Does it accept donations from the public, for example? Apparently not, according to the ‘charity overview’ on the commission public register of charities. I’d check the charity website, but there doesn’t seem to be one.
6. The trustees’ annual report says: ‘The Trust has continued to support the Arts and Charities providing assistance to those in need.’ This statement is so opaque as to be almost meaningless.
7. The latest accounts show the charity made grants to other charities totalling £268.30k last year. Yet the recipient charities aren’t identified. Why?
8. Second, the link for the accounts made up to 5 April 2019 on the commission public register of charities actually produces those made up to 5 April 2020 again. Where are the 2019 accounts?
9. Third, are you still a trustee of the charity? Yes, says the commission register of board members’ interests 2021. The commission public register of charities, by contrast, shows a sole trustee: Dr Sara Karet. Further, given the common surname, are you and Dr Karet related?
10. Fourth, are such opaque accounts really befitting a member of the commission board, let alone its interim chair?
11. Fifth, as a current or former trustee of a grant-making charity, you’re conflicted as a member of the commission board, let alone its interim chair.”
12. Here is Mr Karet’s emailed response in full: “I resigned as a trustee of the Nathan Karet Charitable Trust before taking on the role of Chair at the Charity Commission. This is reflected on the Charity Register, and the Register of Board interests on the Commission’s website should be updated in due course. Board members of the Charity Commission are allowed to be trustees of charities provided this is declared in the Register of Interests.
13. The charity was established by my parents and a great aunt. Family members have made donations over the years. The charity has (and, so far as I know, has had) no other source of funds. It has supported a range of causes including the arts (theatre and music), science and religious charities.
14. The trustees engaged an experienced Chartered Accountant to assist with the accounts. The 2019 accounts were filed at the relevant time. I will ask the trustees to look into what has happened.”