Charity regulator publishes final statutory inquiry report into Victoria Housing Estates Limited (including Bangor Provident Trust Limited)
The Charity Commission for Northern Ireland, the independent regulator of charities, has published its final statutory inquiry report into the County Down based charity, Victoria Housing Estates Limited (VHE).
VHE managed over 420 properties which it let to tenants in a number of areas, including Bangor, Dundonald, Andersonstown, Belfast city and Glengormley. VHE also collected ground rent for approximately 600 properties and parcels of land in Northern Ireland.
The regulator first opened an inquiry* into the charity in July 2012 and appointed an interim manager. A forensic examination was undertaken to investigate issues including, amongst others, whether the charity had misapplied any of its assets.
This identified serious financial management and governance issues, which had caused the charity and its beneficiaries significant detriment. It was calculated that over £21 million of investment was required to bring the charity’s properties up to an acceptable standard, a situation the Commission considered to be unacceptable for both the charity and its beneficiaries.
The regulator took action to protect the charity’s beneficiaries, funds and assets against further risk, including recovering hundreds of properties used for private benefit, appointing a trustee to improve the governance of the charity and commencing action, through the courts, to recover funds misappropriated from the charity. This action led to a number of legal challenges.
Earlier this year a settlement was agreed between the Commission, VHE and its former charity trustees. This has brought a long awaited resolution to the tenants of the charity’s properties, who have been given an assurance as to the future of their homes thanks to a £28 million investment programme from Choice Housing association.
Under the investment programme, VHE tenants have had the option to move to Choice Housing under a long term and secure social tenancy agreement. In this option, Choice Housing took ownership of the properties with each home receiving significant and much needed refurbishment. Those who did not wish to move to a Choice Housing tenancy were offered the opportunity to purchase the property through an application process.
The Commission’s actions led to the recovery of hundreds of properties belonging to the charity which were utilised for private benefit, protected thousands of tenants and the charity’s assets against further risk, and ensured proper application of assets for similar charitable purposes going forward.
In reaching a settlement, the former charity trustees can no longer seek to challenge the legality of the property transfer and subsequent investment. The terms of settlement also mean an end to the Commission’s pursuit of restitution from the former charity trustees, being satisfied that the repayment sought is beyond their current means.
With the inquiry concluded, full results are available in the inquiry report, which wis available below. The report also refers to the related charity, Bangor Provident Trust (BPT), which shared the same management committee as VHE.
Rossa Keown, Head of Compliance and Enquiries at the Charity Commission for Northern Ireland, said:
“This has without doubt been one of the most complex and prolonged inquiry cases the Commission has undertaken. However, throughout every step of the process, the best interests of the charity and its beneficiaries remained a priority for the Commission.
“The resolution which has been found will bring an end to the issues and uncertainty in this charity, paving the way for significant and much needed investment into the homes of the beneficiaries.
“While cases such as this are rare in Northern Ireland, the publishing of this inquiry report offers an important lesson, highlighting the importance of ensuring charities are well run, with trustee decisions made in the best interests of the charity and in keeping with its charitable objectives at all times.”
For further information on the role and responsibilities of being a charity trustee, see the Commission’s Running Your Charity guidance which is available online here.
Ends
For more information please contact Shirley Kernan, Charity Commission for Northern Ireland Communications Officer, on telephone: 028 3832 0169 or email: shirley.kernan@charitycommissionni.org.uk
Notes to editors
The Charity Commission for Northern Ireland is the independent regulator of charities in Northern Ireland.
The Commission has statutory objectives to ensure trustees comply with their legal obligations in managing charities, and to increase public trust and confidence in charities. This includes a statutory function to identify and investigate apparent misconduct or mismanagement in the administration of charities, and to take remedial or protective action.
*Under statutory inquiry, the Commission may use its most stringent powers under the Charities Act (Northern Ireland) 2008 to address concerns about a charity. The Commission will undertake a statutory inquiry if there is serious and substantial risk to the assets or beneficiaries of a charity.
The publishing of the final report follows the conclusion of both the inquiry and associated legal proceedings. An interim report was originally published on the Commission’s website in 2018, providing an update to the charity’s beneficiaries and its funders while litigation was ongoing.