OSCR launches probe as board resigns after Scottish Government says it has no confidence in its governance
Voluntary Sector Gateway West Lothian has been plunged into crisis following the resignation of its entire board.
Long standing concerns over its governance are thought to be behind the move while a spat between its SNP councillor chair and the ruling Labour local authority is thought to have exacerbated the organisation’s problems.
The body, one of 32 third sector interfaces (TSI) in Scotland, exists to bring together voluntary action in the area and connect with the local council.
However, during its AGM on Monday, the entire board stood down after Alex Neil, the cabinet secretary, wrote a letter to chair Willie Boyle saying the group had lost the trust and confidence of those it is expected to serve.
In the letter Neil warned that he was considering stripping the charity of its official function.
The cabinet secretary had been made aware of concerns regarding the process of appointing directors, a lack of transparency in drawing up a new constitution and a lack of involvement from the third sector.
He said: "The arrangements and process that have been made public with regard to the AGM and election/appointment of board members are of real concern.
"The TSI in West Lothian must be able to command the confidence and trust of partners and the third sector and the Gateway does not appear to us to be fulfilling this requirement."
The gateway was subject to a Scottish Government commissioned investigation earlier this year, which it has failed to make public, and is also under a separate investigation by charity regulator OSCR.
Over £1.2 million in donations and grants have been received by the charity between 2011 and 2013.
Neil Findlay, the West Lothian Labour MSP, said: "The decision of Councillor Willie Boyle and the board to resign was the right one.
“We now have the opportunity to bring in a new board with the skills and vision needed to turn the organisation around. I hope this is a new beginning for the Voluntary Sector Gateway in West Lothian.
A Scottish Government spokesperson said: "Despite our considerable efforts and time working to find a way forward, the board had not been able to meet our requirements.
During the AGM we understand the board resigned and the membership have elected new directors who will act as an interim board.
“We now look forward to working with the new board to take forward the actions deemed necessary, by the Scottish Government and local partners, to have a Third Sector Interface that commands the confidence of all its stakeholders and will serve the third sector well in West Lothian."