A National Audit Office (NAO) investigation into the Big Society Network and its parent charity the Society Network Foundation today finds:
• An extra £1 million – on top of the £2.1 million already investigated - in grants to the Big Society Network uncovered.
• Awards were made using Ministerial powers to stop other charities bidding for the money.
• Prime Minister’s office intervened when Cabinet Office looked into the funding of the Big Society Network
• Prime Minister’s advisers lobbied for the charity after a meeting with the Tory donor who was Chair of Trustees
• In total £3 million of public money was wasted on projects run by the organisation.
Lisa Nandy, Labour’s Shadow Minister for Civil Society, responding to the NAO report on the Big Society, said:
“The Big Society has lost its last shred of credibility. The thousands of charities who have had their funding cut will be dismayed to read today’s report, and learn an organisation with strong ties to the Prime Minister was allowed to waste millions of pounds of public money on pet projects.
“The Conservative donors and supporters that ran the Big Society Network were hand in glove with Ministers and advisers, who didn’t seem to care the organisation they were writing cheques to hadn’t even filed its accounts. Concerns were overruled by the Prime Minister’s office after a meeting with the Tory donor who was a trustee. Advisers were lobbying independent funders for projects that didn’t get off the ground. At a time when public funding is being slashed the behaviour is breath-taking.
“Ministers wrote these cheques while denying thousands of legitimate charities a lifeline. At a time when the voluntary sector is struggling to keep its head above water they should be ashamed of themselves.
“David Cameron used to talk a lot about the Big Society, his silence on this is deafening. He owes us all an explanation.”
ENDS