The Electronic and Electrical Industry Benevolent Association has appointed an interim general manager who is also a non-executive director of Charity Business, a company that runs its finance operation.
The EEIBA, which supports people connected with the electronics and electrical trades, appointed Valerie Austin, who is also an investor in Charity Business, as its interim general manager two weeks after it appointed the firm to run its finance operation.
Austin replaces the former chief executive, Timothy Lambert, who left the charity in September after 15 years. A spokesman for the EEIBA said Lambert had left by mutual consent.
Lambert told Third Sector he was forced to step down after his post was made redundant. He was unable to make any further comment because of an agreement made with the charity.
One member of staff is understood to have been offered a transfer to Charity Business under the arrangement to run the finance function. The charity declined to comment on this. It confirmed that other members of staff could still face redundancy.
Ian Humphreys, president of the EEIBA, said a review earlier this year found a "higher than expected differential" between the charity's running costs and the grants it made.
"A decision was made to follow the outsourcing route at a meeting held by our council on 30 September," he said. "After a full interview process was conducted, the interim general manager was appointed on 13 October for a three-month period. She had no prior connection with the charity, its trustees or staff in any form whatsoever prior to her appointment."
Charity Business did not respond to calls from Third Sector.