RI being investigated by Charity Commission

Thu 11 Feb 2010

The Royal Institution (RI) is being closely scrutinised after leasing office space without legal permission.

According to the Guardian, the scientific body leased the space in London to Ferranti Limited, a private equity firm whose chief executive is also chair of the RI.

However, the RI's charitable status means it is obliged to report any leases of this nature - anything which involves a person connected with the group - to the Charity Commission.

Chris Rofe, chief executive of the RI, acknowledged that it had failed to seek permission from the regulator when the tenancy was granted in December 2008.

However, he said it was currently "clarifying the information required" to ensure it did not breach any laws.

The Charity Commission, which is chaired by Dame Suzi Leather, has confirmed that the lease in question was issued without proper authorisation and is seeking further details from the RI as part of its investigation.

Barry Gilham, a solicitor at law firm Winckworth Sherwood, commented: "It is important for charities to establish good practice management in respect of their property portfolios.

"Charities with extensive portfolios can easily overlook certain requirements relating to property dealings but by doing so can have expensive ramifications.

"A Charity Commission investigation, combined with potential legal action from tenants, can result in incurring legal costs and negative publicity that could seriously harm both the charity's accounts and public image."