It is with a heavy heart that I announce that just before Christmas we uncovered fraud, and a misappropriation of funds at CSAN. Further investigation revealed that this activity went back for some five years, resulting in a potential loss of significant funds.
This activity was carried out by a then member of the staff team, who has admitted to the activity. This member of the team is no longer with CSAN.
Clearly, our internal financial controls over this period were not robust enough to detect this activity. This has come as a profound shock to everyone at CSAN and to previous trustees and executive officers.
We have taken the immediate and necessary steps in our financial controls to ensure that this activity can never happen again. We are in the process of trying to recoup some of our losses.
We have reported this activity to the authorities, including the Charity Commission. They noted with concern the scale and length of time this had been happening, but were reassured by our swift and effective response. They have asked to be kept updated.
We are all probably aware that this kind of activity happens in all sectors and seems to be on the rise. We just didn’t expect it to happen at Caritas Social Action Network.
Please be assured that the board has approved revised and robust internal financial control procedures to ensure this does not happen again. We are in the process of appointing a Finance and Operations Manager to strengthen our capacity in this area.
Despite this set back, I hope you continue to see the value in supporting Caritas Social Action Network.
Raymond Friel, CEO
12 February 2024
