Liquidators appointed at company linked with charity at centre of regulator investigation
Liquidators have been appointed at a company associated with a Liverpool charity currently being investigated by regulators. The Big Help Project was set up to assist people in and around the city who are struggling with poverty and which provides accommodation to vulnerable adults.
Big Help Project Limited is based on East Prescot Road in Dovecot and its director is former Liverpool city councillor Peter Mitchell. Insolvency practitioners Stratford Hamilton and James Sleight of PKF Littlejohn Advisory have now been appointed joint liquidators of Big Help Project Limited.
The limited company is an entity associated with the Big Help Project charity and Mr Mitchell was CEO of the charity. However, a spokesperson for the Big Help Group said: "We are aware of the liquidation of BHP Ltd. BHP Ltd is a separate for profit private limited company which has no relationship with Big Help Project the charity. We are continuing to work closely with the administrators to support the mutual closure of the private limited company."
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The Big Help Project is currently being investigated by the Charity Commission as to whether potential misconduct or mismanagement was to blame for significant financial losses to the Liverpool-based organisation. In February, the ECHO reported that the commission first engaged with the Liverpool-based charity after 'identifying a significant increase in its reported income.'
The commission has expressed concern over trustee decision making, potential unauthorised trustee benefit, and unmanaged conflict of interest. In order to investigate further, the regulator opened a statutory inquiry into the charity on December 7 last year.
In a statement, it said will examine the administration, governance and management of the charity, including if:
conflicts of interests and transactions with connected parties have been adequately identified and managed.
there has been any unauthorised trustee benefit.
any misconduct and or mismanagement led to financial losses for the charity.
the charity has accurately accounted for its funds and assets in line with legal requirements.
The Commission said it may extend or amend the scope of the inquiry if additional regulatory issues emerge. After this, it is expected that a report will be published that details the issues examined, any actions taken and the outcomes.
A spokesperson for Big Help Project said in February: "We are very disappointed to note the decision of the Charity Commission.
"We have cooperated fully and will continue to cooperate fully with the Charity Commission. None of our service delivery will be affected in any way and we will continue to provide the same lifechanging support that we have for the past 12 years.
"We look forward to clearing up any issues raised during this process and are now exploring various legal channels through which we can do so. As the Commission’s guidance states (CC46_.pdf (publishing.service.gov.uk), 'An inquiry should not in itself be seen as a determination by the regulator of wrong-doing in a charity'. The hundreds of clients we help each week can rest assured they remain our priority."