Charity Commission inquiry into Education for Gondar, and formerly registered charities Education in Sidama, Education for Nyanza and Education in Western Province

The Charity Commission has recently published its decision following a class inquiry into four charities purporting to promote education in Kenya and Ethiopia.

It concluded that Mr Richard Gary Lorrison had set up and used the charities for personal benefit. Mr Lorrison was disqualified from acting as a trustee and all four charities were ordered to close.

In August 2023, the Commission received nine registration applications linked to MWA Management Advisory Services, the sole director and member of which was Mr Lorrison. The Commission then identified four registered charities (Education for Gondar, Education for Nyanza, Education in Western Province, Kenya, and Education in Sidama) which also appeared to be connected to Mr Lorrison and MWA Management Advisory Services. By 25 August 2023, the Commission selected Education for Gondar for review, to determine whether there were any regulatory concerns. The Commission then opened compliance cases into the three other charities.

The Commission found that the four charities showed similar trustee appointments and common linked addresses. Accounts for all four charities had been signed off by Mr Lorrison. Mr Lorrison was also a trustee and the Chair for Education for Gondar. The charities were all in default of their accounting requirements - the trustees had failed to submit their accounts on time and accounts were not compliant with the Charities Statement of Recommended Practice (the 'SORP'). The Commission also identified similarities in the wording of the trustees’ annual report for all four charities, all of which were signed by Mr Lorrison.  As a result of these concerns, the four compliance cases were escalated to a statutory class inquiry opened under s46 of the Charities Act 2011 (‘the Act’) on 1 February 2024.

The inquiry was particularly concerned with:

• the management of the charities’ finances
• accounting for their charities’ funds and assets;
• unauthorised payments to trustees or connected persons; and
• ensuring their charities’ objects are being met and operations are for the public benefit.

Key findings

The inquiry uncovered the following issues: 

• Unauthorised payments to trustees or connected parties

Between September 2018 and July 2022, over £270,000 was transferred from the charities' bank accounts to Mr Lorrison's personal account. This was found to have been misappropriated.

Bank statements for Education for Gondar and Education in Sidama did not evidence either of them having received any donated funds or grants. The trustees were unable to account for any donations on which Gift Aid had been claimed.

• Governance

Lorrison advertised trustee roles (and in some cases offered payments) on job recruitment sites. After interviewing candidates and appointing them as trustees, Lorrison ceased all contact with them. None of the trustees had any involvement with the four charities and were 'completely unaware of the concerns raised by the investigation until the class inquiry'. The report found that: 'The trustees were effectively trustees in name only. This is a failure of the trustees to fulfil their legal duties and responsibilities as trustees and is misconduct and/or mismanagement in the administration of the charities. It’s, however, clear that Lorrison used these individuals without their knowledge or involvement to give the impression that the charities had the appropriate governance and oversight.'

• Accounts

As mentioned above, all the charities were in default regarding their accounting information for FYE 31 January 2023. These accounts were never submitted to the class inquiry despite the trustees being directed to provide them. A failure to submit accounts and/or an annual return to the Commission within the required timeframe is a criminal offence.

None of the charities' previously submitted accounts complied with SORP. Charity trustees are responsible for ensuring their charity complies with the law and is accountable. 

•  Public benefit

The class inquiry found that none of the four charities were or had ever operated for the public benefit. No evidence was provided to the class inquiry to show how the charities met this requirement despite evidence being requested.

The trustees confirmed that the charities were not operating and therefore the class inquiry sought to dissolve the charities.

•  Misconduct and mismanagement

The Commission repeatedly tried to make contact with Mr Lorrison and the other trustees. Mr Lorrison never responded to the class inquiry’s contact attempts and failed to comply with the Commission's directions.

Each of the issues described above are deemed misconduct and/or mismanagement in the administration of the charities.

The report states that 'the abuse of charities for unlawful purposes is absolutely unacceptable' and that the Commission will 'share any evidence suggesting a possible civil or criminal offence with the police'.