LONDON (AP) — British supermodel Naomi Campbell has been prohibited from serving as a charity trustee in England and Wales for five years after an investigation concluded that the poverty charity she founded nearly two decades ago was “poorly governed” and suffered from “inadequate financial management.”
The Charity Commission, which oversees the registration and regulation of charities in England and Wales, conducted a three-year investigation into the financial activities of “Fashion for Relief.” They discovered “multiple instances of misconduct and/or mismanagement,” revealing that only 8.5% of the charity’s total expenses were allocated to charitable grants over a six-year period beginning in 2016.
For instance, the commission reported that thousands of pounds in charity funds were used to cover Campbell’s luxurious hotel stay in Cannes, France, as well as expenses for spa treatments, room service, and even cigarettes. The regulator asked the trustees for explanations, but no evidence was provided to support their claim that hotel expenses were typically funded by a donor, thereby not costing the charity.
Campbell, 54, expressed that she was “extremely concerned” about the commission’s findings and stated that she is conducting her own investigation.
“I was not in control of my charity; I entrusted its management to a legal employer,” she said in response to a question from the AP after being honored as a knight in France’s Order of Arts and Letters for her contributions to French culture. “We are investigating to understand what happened and how it happened, and everything I do and every penny I have ever raised goes to charity.”
The commission also determined that fellow trustee Bianka Hellmich received approximately £290,000 ($385,000) in unauthorized funds for consultancy services, violating the charity’s constitution. Hellmich has been disqualified as a trustee for nine years, while another trustee, Veronica Chou, has been barred for four years.
“Trustees are legally required to make decisions that serve their charity’s best interests while adhering to their legal duties and responsibilities,” stated Tim Hopkins, deputy director for specialist investigations and standards. “Our inquiry has revealed that the trustees of this charity failed to uphold these responsibilities, prompting our decision to disqualify them.”
The charity, established in 2005 in the wake of Hurricane Katrina in New Orleans, was dissolved and removed from the charity register earlier this year. Its still-active website claims that it organized fashion initiatives and projects in New York, London, Cannes, Moscow, Mumbai, and Dar es Salaam, raising over $15 million for various charitable causes worldwide.
The charity aimed to unite the fashion industry to alleviate poverty and promote health and education by providing grants to other organizations and offering resources for global disasters.
The commission stated that roughly £344,000 ($460,000) has been recovered, and an additional £98,000 of charitable funds have been safeguarded. These funds were used to make donations to two other charities and settle outstanding obligations.
“I am pleased that the inquiry has led to donations made to other charities previously supported by this charity,” said Hopkins from the regulator.
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Lesprit reported from Paris.
Naomi Campbell’s Charity Under Scrutiny: A Deep Dive into Financial Mismanagement
LONDON (AP) — British supermodel Naomi Campbell has been barred from serving as a charity trustee in England and Wales for five years. This decision comes after a detailed investigation unveiled significant issues within the charity she founded, Fashion for Relief, which has faced extensive criticism for its financial governance and overall management. The Charity Commission’s findings raise critical questions about accountability in charity administration.
Investigation Findings
The investigation, spanning three years, highlighted numerous instances of poor governance and mismanagement within the charity. Here are some key findings:
- Only 8.5% of the charity’s total expenditure from 2016 to 2022 was allocated to charitable grants.
- Funds were allegedly misappropriated for luxury expenses, including hotel stays in Cannes, spa treatments, and even room service.
- No satisfactory evidence was provided to support claims that certain high costs were covered by donors.
Misappropriation of Funds
One of the most alarming aspects of the Charity Commission’s report was the disclosure that thousands of pounds from Fashion for Relief were reportedly used to cover luxury accommodations and personal expenses for Campbell.
Examples of Misuse
| Expense Type | Details |
|---|---|
| Hotel Stays | Luxury hotel accommodations in Cannes |
| Spa Treatments | High-end spa services |
| Room Service | Extensive in-room dining |
| Cigarettes | Paid for using charity funds |
The Legal Consequences for Trustees
Alongside Campbell, other trustees of the charity also faced sanctions due to the lack of financial oversight:
- Bianka Hellmich: Disqualified for nine years after receiving £290,000 ($385,000) in unauthorized funds.
- Veronica Chou: Barred for four years as a consequence of the investigation.
Responses from Those Involved
Naomi Campbell expressed her distress over the findings, emphasizing that she was not in direct control of the charity. She stated:
“I was not in control of my charity, I put the control in the hands of a legal employer. We are investigating to find out what and how, and everything I do and every penny I ever raised goes to charity.”
Charity Overview
Founded in 2005 in the wake of Hurricane Katrina, Fashion for Relief aimed to unite the fashion industry in combating poverty and advancing health and education globally. Despite its lofty goals, the recent findings have substantially tarnished its reputation.
Notable Achievements
- Raised over $15 million for various causes worldwide.
- Organized fashion initiatives in major cities including New York, London, Cannes, Moscow, Mumbai, and Dar es Salaam.
Financial Recovery and Future Steps
As part of the inquiry, approximately £344,000 ($460,000) has been recovered, with an additional £98,000 of charitable funds being protected. These amounts are now earmarked for donations to other charities and settling outstanding debts.
Regulator Insights
Tim Hopkins, deputy director for specialist investigations and standards, remarked:
“Trustees are legally required to make decisions that are in their charity’s best interests and to comply with their legal duties and responsibilities.”
Consequences for Charity Governance
The scrutiny surrounding Fashion for Relief serves as a cautionary tale for charity governance. With rising concern about transparency and accountability, it is vital for charitable organizations to ensure ethical practices and proper financial oversight. Here are some essential practices to consider:
Best Practices for Charity Governance
- Regular Audits: Conduct thorough and regular audits to ensure financial integrity.
- Transparent Reporting: Maintain transparency in financial reporting, including detailed expenditure breakdowns.
- Trustee Education: Ensure that all trustees understand their legal duties and responsibilities.
- Donor Agreements: Clearly outline any agreements between the charity and its donors to avoid misappropriation of funds.
Conclusion
The case surrounding Naomi Campbell’s Fashion for Relief highlights critical issues related to charity governance and financial management. Facing disqualification from trustee roles, Campbell and her associates can reflect on the lessons learned from this extensive inquiry as they investigate the management failures that occurred. The path forward for charities like Fashion for Relief entails rigorous accountability and a recommitment to the core charitable missions to restore public trust.