Camila Batmanghelidjh

In 1991, Batmanghelidjh was involved in the formation of The Place to Be, a Family Service Unit project working with troubled children in primary schools.[27][28] She worked at the unit for three years followed by two years when it had been established as Place2Be. During that time, she wrote the manual for the groundbreaking therapeutic idea. Subsequently, several charitable trusts funded the project. Batmanghelidjh resigned from the project in 1996 to set up a new venture called Kids Company.

The Urban Academy was a post-16 educational and life skills academy in Southwark, South London. It was founded by Batmanghelidjh and was run by her Kids Company organisation.[29][30][31] The organisation offered a second chance at education for young people who had experienced significant trauma and failed to engage with other settings.[32]

In 1996, after leaving The Place To Be, Batmanghelidjh founded Kids Company, a charity that provided care to children whose lives had been disrupted by poverty, abuse, trauma and gang violence. Originally a single drop-in centre in Camberwell, Kids Company claimed it helped some 36,000 children, young people and families. Although this figure was disputed [33] as part of the 2015 allegations against the charity, it was not questioned by the Official Receiver, who investigated the charity's documents. The 2021 High Court case, presided over by Mrs Justice Falk, heard that Kids Company also employed 600 staff and served as a training placement for more than 500 NHS and social work students annually. It also benefitted from the contribution of 10,000 volunteers. https://www.judiciary.uk/wp-content/uploads/2021/02/Official-Receiver-v-Batmanghelidjh-judgment-120221.pdf

Kids Company operated through a network of street-level centres, alternative education centres, and therapy houses, with over 40 schools in London and Bristol, as well as a performing arts programme in Liverpool.[34]

The charity pioneered collaborations between scientists and its children to understand better how trauma negatively impacts brain development and health. The research was subsequently published in medical and scientific journals.[35][36][37][38]

Kids Company also undertook pioneering work with the arts. Batmanghelidjh curated exhibitions exploring child trauma at Tate Modern,[39] the Saatchi Gallery [40] and The Royal Academy.[41] In 2012, the arts programme at Kids Company was honoured by the Royal Society for Public Health for 'innovative and outstanding contributions to the field of arts and health practice with children and young people.' [40]

Deborah Orr, in an interview with Batmanghelidgh, reported in 2012 that 15 independent evaluations of Kids Company had found that 96% of children assisted returned to education and employment and it had an "impact on crime reduction" of 88%.[22]

In 2013, Kids Company was the subject of a major LSE study which concluded: "Kids Company combines flexibility and staff commitment to enable absolute focus on the needs of vulnerable children; they offer to the child the knowledge that someone cares, loves and will not give up on them, irrespective of any challenging and unstable response that may come back from the child." The study also found staff productivity and well-being to be above 90 per cent.[42] This was commissioned by Kids Company, who paid £40,000 for the glowing report.[43]

Later, it emerged that Batmanghelidjh had asked the Cabinet Office to bring in KPMG accountants to identify the number of abused, neglected and mentally ill children the State had legal responsibility for, but instead, they were self-referring to the charity. The Cabinet Office was reluctant to participate in this fact-finding initiative and later called for Batmanghelidjh's resignation.[44] The central challenge for the charity and its sustainability was the fact that abused children and young people were not only accessing the provision themselves, but also referring friends who were being harmed.[45]

In 2014, Batmanghelidjh invited the Centre for Social Justice to review child protection failings in Britain and the outcome was a damning report called Enough is Enough.[46]

After these findings, Batmanghelidjh sought a partnership between major child welfare agencies and mental health organisations, such as the Institute of Psychiatry, intending to launch a campaign called "See the Child: Change the System", which had funding to explore a new design for UK children's services.[47]

In 2015, it was first reported that Kids Company was in significant financial difficulty due to unsubstantiated allegations.[48] Kids Company received a £3m government grant in July of that year but within ten minutes of the money transfer, allegations of sexual abuse emerged via Newsnight. The programme broadcast the allegations before the outcome of any police investigation, and the report led funders to withdraw grants.[49]

In August 2015, the charity had a year's funding, including three months' reserves, and could meet all its liabilities. Mrs Justice Falk later confirmed that the charity would have survived if not for the unsubstantiated sexual abuse allegations, broadcast by Newsnight without being brought to the charity's attention or any professional bodies.[50]

The Metropolitan Police cleared the charity of wrongdoing in early 2016 and commended its safeguarding practices.[51]

In July 2015, a report by Newsnight and BuzzFeed revealed that public funding for Kids Company was to be withheld unless Batmanghelidjh was replaced.[52] On 3 July, it was reported that Batmanghelidjh would step down as chief executive in the next few months and continue in a "presidential" role.[53][54]

On 5 August 2015, Kids Company closed its operations,[55] less than a week after receiving a government grant of £3 million. The charity was given the money against the advice of officials, who had raised concerns about the value of money and how it would be spent.[56] The charity had announced that it was closing down because "it [was] unable to pay its debts as they fall due".[57]

Speaking to The Daily Telegraph in August 2015, Batmanghelidjh said she hoped Kids Company could return after some restructuring and once the media storm had died down.[58]

Post-2015, Batmanghelidjh continued to work with vulnerable children and families. This included the provision of good therapy, advocacy and safeguarding. She collaborated with several charities, including Oasis Community Learning.[59]

In February 2016, the Commons Public Administration and Constitutional Affairs Committee (PACAC) released a report describing the collapse of Kids Company as "an extraordinary catalogue of failures".[60] It concluded that throughout Kids Company's 19-year existence, the Board ignored repeated warnings about the charity's financial health, failed to provide robust evidence of the charity's outcomes, and did not adequately address increasing concerns about the suitability of its programmes and behaviours of its staff. The Trustees' negligent financial management rendered the charity unable to survive the predicted reduction in donations following the emergence of allegations of sexual abuse. Its closure left many vulnerable beneficiaries without an essential source of support. The report cites extraordinary accounts of luxury items and holidays or spa days being lavished on "Camila's kids", a favoured group of clients, concluding that such expenditure diverted charitable funds from other projects and programmes that had the potential to provide more long-term and effective support to a wider group of young people.

On 20 October 2020, the Official Receiver opened a case at the High Court against former directors of Kids Company, including seeking a six-year disqualification from holding company directorships for Ms Batmanghelidjh, and four years for Alan Yentob.[61][62] even though she was chief executive and not a director. On 12 February 2021, the High Court dismissed the case against Batmanghelidjh and the other trustees.[63] Mrs Justice Falk in the High Court said: "Most charities would, I think, be delighted to have available to them individuals with the abilities and experience that the trustees in this case possess. It is vital that the actions of public bodies do not have the effect of dissuading able and experienced individuals from becoming or remaining charity trustees."[64][65] The judge spoke of Batmanghelidjh's "enormous dedication [that] she showed to vulnerable young people over many years" and her achievements, adding, "It would be unfortunate if the events the focus of this decision were allowed to eclipse those achievements."[64]

The judgement also suggested that the Charity Commission would have been better placed to deal with the case. An inquiry by the Commission was put on hold because the Insolvency Service's work took precedence. On 20 August 2015, the Charity Commission launched a statutory inquiry into Keeping Kids Company under Section 46 of the Charities Act 2011. However, this was placed on hold pending the outcome of the High Court judgement. The regulator's inquiry report was finally published in February 2022.[11] The Commission were not so glowing as Justice Falk in their experienced assessment of the charity, criticising the trustees and former CEO of Kids Company and making a formal finding of "mismanagement in the administration of the charity" over its repeated failure to pay creditors, including its own workers and HMRC, on time.[12] On the matter of Batmanghelidjh's power and influence over the board of trustees, the Commission stated: "Founders of charities need to be mindful that a permanent leadership role is rarely in the best interests of a charity. There are other ways of harnessing the passion and talent of founders or charismatic individuals without their having executive or strategic power and responsibility. No charity should be defined by a single individual".[11]