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Homelessness charity investigated over property deals and ‘luxury’ purchases
A homelessness charity in the North of England is under investigation over “serious financial concerns”.
The Charity Commission, which regulates the third sector, has opened a statutory inquiry into The Ashley Foundation over suspect property deals and spending.
Based in Blackpool and with operations in Sunderland and Blackburn, The Ashley Foundation runs hostels and housing for homeless people. It is not registered with the Regulator of Social Housing.
On Wednesday the charity regulator said it began a formal investigation into the foundation on 20 March after being “alerted to concerns about purchases of luxury goods on the former [chief executive’s] personal credit card, which were reimbursed by the charity”.
Investigators are looking into “whether the transactions were reasonable and in the charity’s best interests”, the Charity Commission said, adding that the purchases “do not appear to be linked to the day to day activities of the charity”.
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According to Companies House, The Ashley Foundation’s former chief executive Lee Dribben resigned on 4 February.
The Charity Commission said it is “also aware that charity properties were sold to a third party and then re-sold on the same day for a significantly higher value”.
These properties “are now being managed by the charity under a management agreement with a third party, the terms of which raise potential concerns”, the commission added.
It said the opening of an inquiry is not a finding of wrongdoing and that the investigation will focus on the “administration, governance and management of the charity”, with findings to be later published in a report.
A spokesperson for The Ashley Foundation said: “The Ashley Foundation can make no further comment regarding the Charity Commission investigation other than to say that it will be co-operating fully with the commission.
“Our primary focus remains the provision of accommodation and support for the homeless in Blackpool, Sunderland and Blackburn, and especially so during these difficult and challenging times.”
Attempts have been made to contact Mr Dribben for comment.
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