Government officials, charities and local authorities are now being been briefed over the impact the closure of the leading charity may have on communities.
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He said Kids Company had applied for funding from City Hall but was not successful – not because of any concerns over the way it handled finances.
The charity told the BBC: “Kids Company’s July payroll was two days later than usual whilst we waited for a grant from the Cabinet Office to arrive”.
The charity Kids Company has indicated that it will close this evening, a week after getting a £3 million government grant, it was reported last night.
The Telegraph’s source said Batmanghelidjh’s credit with Cameron made her untouchable.
Kids Company says its aim is to restore their trust and provide an environment in which they can begin the healing process, “using a carefully designed support system that includes psychotherapy, counselling, education, arts, sports, hot meals and various other practical interventions”.
In emails seen by Newsnight and Buzzfeed News Ms Batmanghelidjh told staff: ” I just want to let you know that we have just received our funding from the government and are processing payroll right now”. The national charity operates nine centres and two therapy houses supporting vulnerable, inner city children.
We would like to hear from people who will be affected if the charity closes.
At the time Ms Batmanghelidjh claimed that government briefing was “attempting to discredit me” and distract focus from the charity’s lobbying to improve services for troubled children and youths.
Mr Loughton described the charity as unconventional.
Acting Labour leader Harriet Harman, whose constituency of Camberwell and Peckham is served by Kids Company, demanded a plan to ensure the vulnerable youngsters the charity works with are cared for if it closes.
“I think there was a fear from some of the bigger donors that we have had that if she were to leave the charity it wouldn’t be the same charity any more and they have put their eggs in different baskets”.
He said: “Clearly, as people have been seeing in the last few months, questions have been raised about some of the financial management of the organisation, which I don’t think is in any way a reflection on the idealism and motivations of Camila Batmanghelidjh, the people who support Kids Company or the volunteers who go in there and do great stuff for kids”.
He added: “This was a large amount of public funds, it was the second largest grant I think I was responsible for in the Department for Education and they really did need to justify how the money was being spent”. Whether you’re a young person who’s supported by Kids Company – or you have worked with the organisation.
“Kids Company is now contracted by Lambeth council to run a One O’Clock Club and an adventure playground in the borough”.
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“We are also letting children and parents know about the facilities and activities nearby that are open throughout the summer holidays”. Those services are directly negotiated between the school and the charity.
