The report by the Public Administration and Constitutional Affairs Committee (PACAC) said that there was ‘an extraordinary catalogue of failures at every level’, also citing Government, auditors, inspectors and regulators.
It also calls for change in the way that charities are regulated and funded.
Ministers had handed ‘tens of millions of pounds’ to the charity over successive Governments, despite lacking ‘robust evidence about the quality of the charity’s outcomes, value for money or governance’, it said.
Trustees had allowed the charity to end up in a financially precarious position and relied on ‘wishful thinking and false optimism’, despite repeated warnings from auditors, the report added.
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