Christian charity wound up by court after concerns raised over almost £2m of spending

A Christian church charity that worked with young people at risk of getting involved in crime has been wound up in court after concerns were raised about almost £2m in donations and spending.

Salvation Proclaimer Ministries, more commonly known as SPAC Nation, “either failed to comply or only partially complied” with statutory requirements relating to its finances, the Insolvency Service said in a statement on Friday.

The Official Receiver has been appointed to handle the liquidation of the charity, the Insolvency Service said.

A statutory inquiry into SPAC Nation by the Charity Commission, which was opened in December 2019, is ongoing.

That inquiry opened a month after the Huffington Post published the first in a series of articles alleging that young people attending churches linked to SPAC Nation were being financially exploited by church leaders and that the charity ignored its safeguarding duties to people it helped.

The Insolvency Service said: “Further enquiries found that SPAC Nation either failed to comply or only partially complied with statutory requirements, including providing data to support claimed donations and accounting records in support of £1.87m of expenditure.”

It was wound up “after the court concluded the company operated with a lack of transparency, filed suspicious or incorrect accounts, and was insolvent at the time of the hearing”, the Insolvency Service said, adding that SPAC Nation had given “inconsistent information” to its officials and to the Charity Commission.

Edna Okhiria, chief investigator at the Insolvency Service, said: “While SPAC Nation claimed it had noble intentions to support vulnerable and young people, our enquiries uncovered a different side of the charity.

“There were clear concerns around how the church group managed its affairs and SPAC Nation failed to properly account for income received from donations and other expenditure.”

A Charity Commission spokesperson said: “We have an ongoing inquiry into the charity and as such we cannot comment further at this time.”

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in
RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners