Charity Scandal: Royal Foundation Donations Misused, Fixer Disqualified
A society fixer has been barred from senior charity roles after diverting nearly £200,000 meant for the King's Foundation. The Charity Commission's investigation uncovered misuse of funds across multiple organizations.
The Charity Commission has disqualified Michael Wynne-Parker from senior charity roles for 12 years following an investigation into the misuse of donations intended for the King's Foundation. The inquiry revealed that almost £200,000 of charitable funds were diverted to Wynne-Parker's private company account.
This case is linked to a broader investigation that began in 2022, following media reports of a potential cash-for-honours scandal. The allegations involved Michael Fawcett, a former close associate of King Charles III, who was accused of promising to assist a Saudi billionaire in obtaining British citizenship and a knighthood. While the police investigation concluded without further action, the Charity Commission's inquiry uncovered significant financial irregularities.
The investigation centered on a £500,000 donation made by Dmitry Leus, a Russian former banker, between May and September 2020. The funds were intended for Dumfries House, an 18th-century restoration project in Ayrshire managed by the King's Foundation. However, only £100,000 reached the intended recipient, with £193,730 being transferred to Introcom International Limited, a company solely directed by Wynne-Parker.
Wynne-Parker claimed he took the money as "commission," but the Charity Commission deemed this an improper diversion of charitable funds for personal benefit. The investigation also revealed that the £100,000 initially transferred to the King's Foundation was returned four months later due to concerns about Leus's background.
The inquiry found that the Mahfouz Foundation, of which Wynne-Parker was a trustee, mishandled the remaining funds. Instead of returning the money to Leus or seeking his input on alternative uses, £200,000 was sent to the now-defunct Children and the Arts Foundation without proper consultation.
"I thought Mr Leus had been informed of the arrangement."
However, Leus maintained that he was not consulted about this decision.
The Charity Commission's investigation led to further inquiries, including one into Burke's Peerage Foundation. Two trustees of this organization, William Bortrick and Mark Ayre, were disqualified for using charity funds to purchase antique furniture and artwork for personal use.
Angela Ascroft of the Charity Commission emphasized the severity of the trustees' actions, stating:
"The trustees' actions in this case demonstrated scant regard for the charity's purposes, instead allowing the charity to be misused as a conduit for funds that were misapplied and misused."
This case highlights the importance of proper oversight and management of charitable funds. The Charity Commission's role in regulating over 168,000 registered charities in England and Wales is crucial in maintaining public trust in the sector.
As a result of the investigation, the Mahfouz Foundation was removed from the charity register in October 2023. The Metropolitan Police have stated they will review the Commission's findings, although there is currently no ongoing criminal investigation.
This scandal serves as a reminder of the complex relationships between wealthy donors, charitable organizations, and those in positions of influence. It underscores the need for transparency and accountability in philanthropic endeavors, particularly when they intersect with high-profile institutions and individuals.
