Probe has been ongoing and now in its third year

A Glasgow charity subject to a probe by OSCR has gone under provisional liquidation.

The regulator has been investigating Pollokshields Development Agency since May 2023, although it is thought the appointment of a provisional liquidator is unrelated to the probe.

OSCR's Inquiry, now in its third year, was prompted by concerns over the sudden removal and appointment of trustees and the safeguarding of the charity's financial assets.

A provisional liquidator manages a company's affairs after a winding-up petition has been presented, but before a final decision on liquidation is made. 

It is usually an emergency measure to protect a company's assets from being dissipated or misused during the period between the petition and the final liquidation order. 

Companies House filings reveal the charity's cash reserves dropped from £66,651 from March 2023 to £672 by March 2024. The charity's funds collapsed within seven months of the new trustees taking charge of its finances.

In 2023, TFN reported that the Office of the Scottish Charity Regulator prevented the charity from operating, making a decree to its bank not to sell any of its property over fears assets were at risk.

At the time, an interim inquiry report said the regulator took the decision after receiving concerns that charity trustees had been removed and new trustees appointed, not in accordance with its governing document.

The charity has received more than £1 million of public funds over 10 years and has been supported by Glasgow City Council, Bank of Scotland Foundation, Robertson Trust and the National Lottery Communities Fund.

While the charity's bank accounts were frozen during the investigation, this restriction was lifted in August 2023.

The Pollokshields Development Agency is in now in breach of charity law by failing to file its accounts with OSCR which are now nearly seven months overdue.

A spokesperson for the liquidators said its investigation was ongoing.

They said that none of the trustees appear to be willing to take responsibility for the operation of the charity or for having been in control of its finances.

“They seem to want to abdicate responsibility and say that it was somebody else,” they said.

The accounts also show that its current assets fell from £65,327 in 2022/2023 to just £3,291 in 2023/24.

A source told TFN in a statement: “When funds diminish without accountability, it raises serious concerns not only about the individual organisation but also about the effectiveness of sector-wide safeguards. 

“While OSCR’s investigation continues, issues of transparency and accountability are already evident.”

A spokesperson for OSCR said: “As stated on the Register of Companies for Pollokshields Development Agency, a provisional liquidator has been appointed to this charity. 

“This was not as a result of OSCR’s inquiry, which is ongoing.”