HINDU CHARITY EXONERATED
(9 February 2005)

The Hindu Forum of Britain today welcomed the Charity Commission's exoneration of the Hindu Swayamsevak Sangh's charity arm, Sewa International UK, over allegations that the charity had not used funds for the purposes for which they were raised. Sewa International raised over £2 million in the UK, alone to help in the reconstruction of villages devastated in the 2001 Gujarat Earthquake in which many thousands of people were killed and millions made homeless.

The Hindu Forum also urged the media to announce the Charity's exoneration in the same manner that it publicised the original investigation by the Charity Commission.The Charity Commission Inquiry, which was established to determine whether funds raised had been properly applied in accordance with the terms of the appeal, found that the funds had been properly expended and it was not necessary to consider any alleged links between the Charity and the Rashtriya Swayamsevak Sangh during its Inquiry.

The Inquiry also concluded: "The Commission is satisfied that the trustees have taken sufficient steps to ensure funds have been applied in accordance with the appeal. In January 2004, Sewa International (UK) arranged for a delegation of 30 people from major donors to visit Gujarat to view the completed rehabilitation projects. The delegates produced a report which confirms they were satisfied that the funds had been spent in accordance with the Gujarat appeal."

Ramesh Kallidai, secretary general of the Hindu Forum of Britain said: "The Commission's findings demonstrate Sewa is a transparent organisation that has done nothing wrong and recognises the important contribution it plays in providing essential support to communities in India and South Asia."

He added: "The Hindu Forum and the Hindu community in the UK continue to support the Charity and I hope that the detractors who have besmirched the reputation of the Charity and Hindus in general follow the Commission's lead and whole-heartedly back their valuable work. This Inquiry has been an unwanted distraction to Sewa, which is currently playing an important role in bringing relief to communities affected by the recent Tsunami disaster."

Dhiraj Shah, Secretary of Hindu Swayamsevak Sangh (UK) commented: "We welcome these categorical findings. Hindu Swayamsevak Sangh (UK) pledges to continue its' mission of serving the society whilst ensuring that our activities remain within the legal, accounting and governance framework established by English charity law and regulated by the Charity Commission for England and Wales."

ABOUT THE HINDU SWAYAMSEVAK SANGH

Hindu Swayamsevak Sangh ('the Charity') was registered as a charity on 29 April 1974. The object of the Charity is to advance the Hindu religion and to educate the public in the Hindu ideals and way of life. The Charity is based in Leicester. The Charity had set up a project arm in 1991 known as Sewa International (UK). The purpose of the project arm was to help aged, sick, poor and distressed persons.

A copy of the Charity Commission's report is reproduced below.

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HINDU SWAYAMSEVAK SANGH: CHARITY COMMISSION REPORT
(3 February 2005)

Introduction

1. This report is a statement of the results of an Inquiry conducted under Section 8 of the Charities Act 1993.

2. Hindu Swayamsevak Sangh ('the Charity') was registered as a charity on 29 April 1974. The object of the Charity is to advance the Hindu religion and to educate the public in the Hindu ideals and way of life. The Charity is based in Leicester.

3. Income for the Charity for the financial year ending 31 March 2002 was £1,267,570. This includes £909,112 received by Sewa International.

Background

4. The Charity had set up a project arm in 1991 known as Sewa International (UK). The purpose of the project arm was to help aged, sick, poor and distressed persons.

5. On 26 January 2001 a devastating earthquake struck the state of Gujarat, India resulting in many thousands of people being killed and millions being made homeless.

6. Within a few days the Charity had launched the Gujarat Earthquake Appeal Fund ('the appeal') through Sewa International to help those suffering and to aid the rebuilding of the villages. A number of prominent people became patrons of the appeal.

Issues

7. Following concerns expressed over the administration and expenditure of the appeal, an Inquiry was opened on 4 October 2002. The purpose of the Inquiry was to establish whether the funds raised had been properly applied in accordance with the terms of the appeal.

8. During the course of the Inquiry it was also alleged that the Charity had not been clearly identified on some of the appeal literature. It was suggested that the identity of the charity was important because of the alleged links between the Charity and the Hindu Nationalist Organisation Rashtriya Swayamsevak Sangh ('RSS').

Findings

9. Sewa International launched the appeal in January 2001 following the earthquake in Gujarat. Primary accounting records supplied by the Charity show that £2,330,000 was banked in the name of the appeal.

10. The Charity produced evidence that all the funds raised as a result of the appeal had been sent to an established Indian non-governmental organisation known as Sewa Bharati. This organisation would utilise the funds towards the rebuilding of six villages in Gujarat.

11. The Charity produced a detailed breakdown of the application of funds by Sewa International (UK) in India. The funds were utilised towards the following projects:

£1,062,000 for the reconstruction of six villages
£123,352 for schools project 1
£1,282,352 for schools project 2
£118,887 for other projects
These amounts show that Sewa International (UK) contributed 74% of the total project costs of £3,507,914.

12. The Commission is satisfied that the trustees have taken sufficient steps to ensure funds have been applied in accordance with the appeal. In January 2004, Sewa International (UK) arranged for a delegation of 30 people from major donors to visit Gujarat to view the completed rehabilitation projects. The delegates produced a report which confirms they were satisfied that the funds had been spent in accordance with the Gujarat appeal.

13. Formal audited Accounts for the total income and expenditure of Sewa Bharati were not received.

14. The Charity advised the Commission in 1991 that Sewa International had been set up as a project arm of the Charity and the Commission agreed that the trustees of the Charity had the power to do this. Some of the appeal literature and the Sewa International (UK) website did not clearly identify the link with the Charity. On some items the Charity's registered number was quoted, but the name was not.

15. During the Inquiry, we have been asked to consider the alleged links between the Charity and RSS. The trustees stated that the Charity has no formal organisational links with RSS and that there is only an ideological commonality between the two organisations. Therefore, owing to the Commission being satisfied that the funds have been properly expended it was not necessary to consider any alleged links during this Inquiry.

Outcome of the Inquiry

16. The Commission was unable to establish for itself how the funds were utilised as its request for visas to visit India to undertake an inspection visit were refused by the Indian government.

17. The Charity has been advised that if they wish to use the name Sewa International, all promotional material must state clearly that Sewa International (UK) is a project arm of the Charity.

Wider Lessons

18. Charities working internationally, like all charities, must keep accounting records that show and explain all transactions and are sufficient to ensure that statutory Accounts can be prepared. In particular the accounting records must provide a record of assets and liabilities and details of the nature of all receipts and payments. For further information on charities working internationally see: www.charitycommission.gov.uk/supportingcharities/cwi.asp

19. Where a charity applies funds internationally it is under a duty to take sufficient steps to ensure the funds are applied in accordance with the appeal. Ideally a charity should require the organisation undertaking the charitable relief work to supply a copy of its audited Accounts.

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