British supermodel Naomi Campbell has been barred from being a charity trustee in England and Wales for five years after the poverty charity she founded nearly two decades ago was deemed Thursday to have been "poorly governed" with "inadequate financial management."
Following a three-year investigation into the financial activities of "Fashion for Relief," the Charity Commission, which registers and regulates charities in England and Wales, said it had found "multiple instances of misconduct and/or mismanagement," and that only 8.5 per cent of the charity's overall expenditure went on charitable grants in a six-year period from 2016.
For example, it said that thousands of pounds worth of charity funds were used to pay for a luxury hotel stay in Cannes, France, for Campbell as well as spa treatments, room service and even cigarettes. The regulator sought explanations from the trustees but said no evidence was provided to back up their explanation that hotel costs were typically covered by a donor to the charity, therefore not costing the charity.
Campbell, 54, said she was "extremely concerned" by the findings of the regulator and that an investigation on her part was underway.
"I was not in control of my charity, I put the control in the hands of a legal employer," she said right after receiving the prestigious Ordre des Arts et des Lettres award at the French Culture Ministry. "We are investigating to find out what and how, and everything I do and every penny I ever raised goes to charity."
The commission, which registers and registers and regulates charities in England and Wales, also found that fellow trustee Bianka Hellmich received around 290,000 pounds (US$385,000) of unauthorized funds for consultancy services, which was in breach of the charity's constitution. She has been disqualified as a trustee for nine years. The other trustee, Veronica Chou, was barred for four years.
"Trustees are legally required to make decisions that are in their charity's best interests and to comply with their legal duties and responsibilities," said Tim Hopkins, deputy director for specialist investigations and standards. "Our inquiry has found that the trustees of this charity failed to do so, which has resulted in our action to disqualify them."
The charity, which was founded in 2005 in the aftermath of Hurricane Katrina in New Orleans, was dissolved and removed from the register of charities earlier this year. On its website, which is still active, the charity said that it presented fashion initiatives and projects in New York, London, Cannes, Moscow, Mumbai and Dar es Salaam, raising more than US$15 million for good causes around the world.
The charity had been set up with the aim of uniting the fashion industry to relieve poverty and advance health and education, by making grants to other organizations and giving resources towards global disasters.
The commission said that around 344,000 pounds (US$460,000) has been recovered and that a further 98,000 pounds of charitable funds have been protected. These funds were used to make donations to two other charities and settle outstanding liabilities.
"I am pleased that the inquiry has seen donations made to other charities which this charity has previously supported," said the regulator's Hopkins.
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Lesprit reported from Paris.
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