Court orders closure of Pollokshields Development Agency

Court orders closure of Pollokshields Development Agency

Pollokshields Development Agency (PDA), a Glasgow-based charity founded in 1987 and recipient of over £1 million in public funding over the past decade, has been wound up by Glasgow Sheriff Court, formally ending its 38-year operation.

The charity was funded by Glasgow City Council, Bank of Scotland Foundation, Robertson Trust and National Lottery Communities Fund.

The court’s decision on 22 August coincided with public reporting that same day of financial discrepancies in PDA’s accounts, which included significant cash withdrawals, retrospective mileage claims, and a sharp rise in travel expenses in the 2023 financial year.

PDA also reported incurring costs during a period when the Office of the Scottish Charity Regulator (OSCR) had frozen its bank account and restricted its operations.

The charity’s office bearers told Police Scotland that all funds had been used for charitable purposes and that the accounts were externally audited. However, Shah & Co, the charity’s accountants, stated that they prepared the accounts from figures provided by the trustees and do not provide an audit opinion.

According to Companies House, PDA’s cash reserves fell from £66,651 in March 2023 to £672 by March 2024. The charity has also failed to submit annual accounts to OSCR, now nearly eight months overdue.

The court decided that winding up of the charity was in the best interests of creditors and the public, ensuring the charity’s remaining assets are safeguarded and its financial affairs fully examined. Liquidators now have powers to require trustees to provide records and account for spending.

The decision follows months of examination by court appointed provisional liquidators and a two and a half year inquiry by the Office of the Scottish Charity Regulator (OSCR), which began in May 2023 after a sudden change in trustees.

OSCR confirmed its own inquiry is ongoing and stated it cannot comment further while the investigation remains active. The National Lottery Communities Fund has suspended all funding.

Councillor Jon Molyneux, Pollokshields Ward 6, has stated that it is essential for the Regulator to reach a clear conclusion swiftly.

Dr Sandesh Gulhane, MSP for Glasgow, has sought clarification from OSCR after noting an apparent discrepancy between the regulator’s communications with trustees and statements from the liquidators that the trustees have not accepted responsibility for the charity’s operations and finances.

A source familiar with the matter told Scottish Housing News that the court’s action was “a necessary step to prevent the trustees obtaining further public funding and to restore confidence in the charity sector”.

The closure of the charity marks a profound loss for the Pollokshields community, where generations relied on its services and support.

The charity’s remaining affairs are now being managed by the AAB Group, 133 Finnieston Street, Glasgow, G3 8HB.

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