Catz Club failed to repay Futurebuilders more than £500,000

The after school childcare charity Catz Club has revealed that it failed to pay back approximately £570,000 out of £1.3m it borrowed from Futurebuilders.

The figures had been kept secret because of a confidentiality clause signed by the charity and Futurebuilders when the loan arrangement was terminated in March.

But the charity issued a statement yesterday after agreeing with Futurebuilders that the secrecy should be partially lifted.

The statement says the charity drew down about £1.3m of the £1.8m loan facility offered to it in 2005 by Futurebuilders, the £215m fund of public money established to help voluntary organisations deliver public services.

"Catz Club maintained contractually required repayments (and indeed periodically overpaid) of capital and interest in the sum of £282,740," said the statement.

"The March agreement provided that Futurebuilders would receive an immediate lump sum of £450,000 by way of repayment from Catz Club in place of the 11-year repayment schedule in the March 2005 agreement."

These figures indicate that £567,260 was not repaid. This figure is not given in the statement and the charity did not respond to a request to confirm it.

Futurebuilders has said it has written off part of the loan, but declined to say how much of its total write-offs of £1.8m relate to Catz Club, which trades as Schoolfriendetc (Third Sector Online, 30 October).

The Catz Club statement adds that it received £153,600 of a grant that Futurebuilders offered to it at the same time as the loan. It does not throw light on the reasons for the non-repayment of part of the loan or for the three-month delay in filing its latest accounts with the Charity Commission.

Jayna Danckert, communications manager at Futurebuilders said: "Catz Club approached us requesting that we agree to them issuing a press release so that they could address the current speculation surrounding their charity and the Futurebuilders investment in it.

"We agreed to this request because we also wished to clarify the various rumours and speculations surrounding the investment. We have acted in good faith throughout the entire process, and have nothing to hide, so were happy to comply with the request."

Inquiries into the affairs of Catz Club were started by former Conservative charities spokesman Greg Clark, who reported to the Charity Commission that the charity had made an unlawful donation to the Labour Party.

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