Government accused of failure on vulnerable children as row escalates

Ms Batmanghelidjh (pictured) told the BBC Radio 4 Today programme she had always planned to leave her high profile role as chief executive next year.

But she said complaints over mismanagement were a “red herring” aimed at distracting from the failure of Government to properly look after vulnerable children.

She said she “prayed to God” the briefings were not coming from David Cameron’s office, as she had worked closely with the Prime Minister.

A joint investigation by the BBC’s Newsnight and Buzzfeed said the Government was withholding a £3 million grant until the charity was reorganised.

She said: “We have been debating with Government and having a challenging discussion because Kids Company is taking care of far too many mentally ill children and children who are not being protected robustly.

“Our discussions with Government has been a charity cannot carry this load and they have been sometimes uncomfortable discussions, which has made the Government understandably, potentially, uncomfortable with the message.

“We have had audits in the last 19 years, all of them have been clear. We have raised £150 million worth of money where we have had to process and report on it. We have had London School of Economics evaluate Kids Company in term of its management and functioning, and in terms of its value for money – those reports indicate we are running at a rate of very high excellence.”

Asked if she would stand aside and take another role at the charity, Ms Batmanghelidjh said “of course”.

She said: “My interest is to make sure the children are OK. But what I am trying to explain is these arguments are being put out to avoid the real discussion which is there are large numbers of children who are unprotected in this country and who are not receiving appropriate help.

“What I am trying to explain is since the Blair government we have received repeated government funding – if we were so dysfunctional and we were not reporting and accounting for things, why have several governments given us money?

“This argument has emerged recently because Government is not facing its responsibilities robustly.”

Ms Batmanghelidjh said three directors at the charity left earlier this year because of funding uncertainties, not because of problems in the way the charity managed and reported its spending.

She added: “As a founder, I think it is very important to step down and hand an organisation over to other people to run it.

“I was always planning to do that in the 20th year, which would have been next year. That was always my plan, we were going to appoint a chief executive to take over my role, because I think that’s the right thing to do.

“I want to do clinical work – but that is not the point. We are having an argument about something that is a red herring.

“This is briefing to avoid the real issues.

“I have to believe and hope this is not from David Cameron’s office. It so happens the type of briefing they are now delivering is one in which they are attempting to discredit me so my message is weakened.”

Ms Batmanghelidjh challenged Government officials to bring forward a list of problems if there were genuine concerns about her running of Kids Company.

Of the Prime Minister, she added: “I pray to God it is not coming from David Cameron and his team, I still have to have faith he wants to do the right thing by children.”

The charity was founded by Ms Batmanghelidjh in 1996 and provides support to vulnerable inner-city children, young people and families.

The BBC said the charity’s latest accounts show it relies on the Government for £4 million of its £20 million funding. Newsnight reported that, in order to meet the Government’s funding ultimatum, officials have suggested Ms Batmanghelidjh should take the non-executive position of “president”.

Mr Cameron, who has shared a platform with Ms Batmanghelidjh in the past, has previously defended the charity’s funding against efforts by ministers and officials in the Cabinet Office and Department for Education to cut it or intervene, the programme said.

Officials indicate that Justice Secretary Michael Gove and Chancellor of the Duchy of Lancaster Oliver Letwin have supported a tougher approach to the charity.

A Cabinet Office spokeswoman said: “Making sure that every child has the best start in life is our top priority, so we will continue to work with Kids Company to ensure its important work is sustained.”

The development is the latest blow to hit the charity. In March, Kids Company’s interim finance director, head of human resources and director of development all resigned amid claims of concerns about its funding and “high levels of stress within the workplace”, the Sunday Times said.

Copyright (c) Press Association Ltd. 2015, All Rights Reserved. Picture (c) Ian West/PA Wire.