A Governance Nightmare: What Every Trustee Must Learn from the OBAC Disqualifications

The recent disqualification of four trustees serves as a stark reminder: ignorance is no defence when it comes to charity governance.

The Charity Commission recently concluded a statutory inquiry into the Organisation of Blind Africans & Caribbeans (OBAC) with a severe outcome: the disqualification of four trustees. While the headlines focused on the CEO using the charity as a front for criminal immigration activities, the underlying story is one of catastrophic governance failure.

For trustees and charity leaders, the OBAC case is not just a news story; it is a cautionary tale about what happens when oversight is abandoned.

Here are the critical governance lessons we must take away from this case:

1. The CEO is Not the Charity

The most glaring failure in the OBAC case was the Board’s inability to manage their senior executive. The CEO was allowed to continue in her role even after being convicted of conspiracy to facilitate breaches of immigration law.

The Lesson: Trustees are the ultimate guardians of the charity. While you delegate day-to-day management to a CEO, you cannot delegate your responsibility for their conduct. If a senior leader is under investigation or convicted of a crime, the Board must act immediately to protect the charity’s reputation and assets. Blind loyalty is a liability.

2. Financial Controls are Non-Negotiable

The inquiry revealed that the CEO had sole access to the charity’s funds. This removed any possibility of checks and balances, allowing the CEO to operate without scrutiny.

The Lesson: “Sole signatory” authority should be a red line for any charity. Robust internal financial controls - such as requiring dual authorisation for payments - are not just administrative hurdles; they are the first line of defence against fraud and misuse.

3. You Cannot Ignore the Regulator

Perhaps most damaging to the trustees' case was their refusal to engage with the Charity Commission. They failed to report "Serious Incidents" (such as the CEO’s conviction), ignored orders to provide information, and failed to attend summoned meetings.

The Lesson: The "ostrich strategy" never works. If the Charity Commission knocks on the door, you must answer. Trustees have a legal duty to report serious incidents and cooperate with regulatory inquiries. Silence is often interpreted as either incompetence or complicity.

4. Know Your Operations

The inquiry found that the charity was subletting its office space in breach of its tenancy agreement - a move that jeopardised its primary source of income. The trustees claimed ignorance of the lease terms and the identity of the sub-tenants.

The Lesson: You cannot oversee what you do not understand. Trustees must have a grasp of the charity’s key legal obligations, contracts, and income streams. "I didn't know" is not a valid defence when you hold a legal duty of care.

The Bottom Line

The trustees of OBAC have been disqualified for periods ranging from three to five years. The charity itself has been dissolved.

This case serves as a powerful reminder that the role of a trustee is not merely honorary. It requires diligence, courage, and a willingness to ask difficult questions. When trustees step back, they leave the door open for mismanagement and, in extreme cases, criminal abuse.

Are your governance processes robust enough to withstand scrutiny? Take time to review your financial controls and CEO oversight policies.