Camelot Foundation could sue lottery operator

The Camelot Foundation is considering taking legal action against the Camelot Group for the £2m it says it is owed by the lottery operator.

A source at the foundation said it would be consulting lawyers this week to establish whether there were any legal grounds to challenge for the cash. "We are looking at our legal status and whether we can sue for the money," the source said. "We will be taking counsel's opinion."

The foundation warned that it faced closure in 2008, a year earlier than was originally planned, after it did not receive the first of two £1m payments it was expecting from the group last month (Third Sector, 3 October). A spokesman for the Camelot Group said: "It is a matter for the foundation."

On Monday, representatives of the foundation were called in to meet officials from the Charity Commission to discuss issues that included whether charities would be receiving cash promised to them by the foundation.

The foundation source said: "The commission is the ultimate authority in the sector, and we are keen to get its advice on how best to proceed."

A Charity Commission spokesman said: "We have met the charity as part of an ongoing process through which we are looking to see what guidance and support we can offer."

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