More financial questions surround club provider

30 September 2008

An out-of-school provider forced to return an illegal political donation was also reported to the Charity Commission for 'overdue accounts' last year.

Catz Club, which runs hundreds of out-of-school clubs across Englandunder the working name Schoolfriend etc, recovered 15,000 fromthe Labour Party last month after an alleged 'administrativeerror'(News, 18 September). The Charity Commission is now looking intoother concerns surrounding its finances.

A Commission spokesman said, 'In September 2007, the Charity Commissionreceived concerns about governance issues at the charity Catz Club,including concerns relating to internal financial controls and overdueaccounts. We are taking this matter forward, although at this point intime the Commission has not opened a formal inquiry in order to addressthese concerns.'

The matter is not related in any way to political donations or theprevious case report.

Shadow charities minister Greg Clark, who made the initial complaintabout Catz Club's donation, continued to challenge the charity.

On Monday Mr Clark met with the chair of Futurebuilders, aGovernment-backed fund who invested 2m in Catz Club. ChairStephen Bubb agreed to provide a full briefing on Futurebuilders'investment at the meeting, after Mr Clark raised concerns to chiefexecutive Jonathon Lewis in a letter.

Futurebuilders issued a 1.8m loan and a 200,000 capitalgrant to support Catz Club in establishing childcare services in March2005. In negotiation with the charity, it decided to end the investmentin March 2008.

Futurebuilders and Catz Club issued a statement at the time saying, 'Theparties have agreed to terminate their business relationship onconfidential terms satisfactory to both and each party wishes the otherwell in its future business.'