Encomium
+ Why an interim manager for the church
The Charity Commission is reportedly investigating Christ Embassy, UK, over some serious concerns relating to the use of funds.
According to the body which regulates charities in England and Wales, statutory inquiries are only opened to investigate the most serious regulatory breaches.
The commission said the purpose of the inquiry is to determine whether there has been any mismanagement or misconduct on behalf of the charity trustees; to establish whether charitable funds have been properly applied and take appropriate remedial action if necessary.
The investigation was initiated in July 2013, but after interviewing members of the board of trustees and going through the records and books of the church for a year, the commission was still not convinced that the church has been prudent in managing its finances.
Subsequently, the UK tax authority, HM Revenue and Customs reportedly withheld N711.4 million (£ 2.7 million) due to the church in donation between 2008 and 2012 until the conclusion is resolved.
On August 11, 2014, the commission effectively sidelined the church’s board of trustees and appointed an interim manager to take over the management of the church.
In what it described as a “temporary and protective measure,” the commission appointed Rod Weston of the international audit and accounting firm, Mazars, to take over the running of the church.
Until investigation is concluded, Mr. Weston would take over the management of Christ Embassy, including its staff, assets, interests, and relations with third parties in the UK, the commission said. He is also expected to discharge the functions of the church’s trustees and take steps necessary to secure and take control of the assets of the church.
The commission, however, added that the activities of the church would not be suspended by the appointment, as the interim manager is expected to work with Christ Embassy pastors to ensure its religious and charity activities continue as before.
Although the Charity Commission said it does not provide details of ongoing cases so as not to jeopardise the investigations, multiple sources revealed that the church may have made curious payment worth at least N941 million ((£3.6 million) to individuals and companies closely connected with it.
In fact, an online portal, Premium Times claimed a study of the church’s financial statements from 2009 to 2012 posted on the Charity Commission’s websites, show that approximately N403 million (£1,572,047) was paid to Love World Limited from the transmission of the church’s broadcast.
“Curiously, the sole director of Love World Limited and sole shareholder is one Pastor Obiora Chiemeka, who is also listed as a trustee of the church. Mr. Chiemeka was appointed a trustee in 2009, the year the church began to make the payment to his company.
“The church also paid an estimated N538.5 million (£2.1 million) as grants to mostly Nigerian partner organisations between 2008 and 2012. On a closer look, Premium Times discovered that some of the charges the payments were said to cover were arbitrary, suggesting they might have been used for other purposes other than what they were listed for.
“For instance, between 2010 and 2012 a total of N320.4 million (£1.24 million) was paid to Love World Television Ministry (LTM). These payments appear to be a duplication of the payment for transmission of television broadcast paid to Love World Limited. Though the church’s dedicated television station is called Love World Television, it is not clear how Love World Television Ministry differs from Love World Limited. Love World Television Ministry is not listed on the church’s website among the ministries Christ Embassy runs.
“Also, in 2009, N9.6 million (£37,785) was paid to the church’s healing ministry known as Healing School. In 2010, N20.5 million (£97,850) was paid to the same school. However, the amount paid to the ministry dropped drastically in 2011 to N346, 072 (£1,350). Then the payment to the ministry shot up astronomically to N25.6 million (£100,000) in 2012.”
The church has not reacted to these scandalous allegations rocking and threatening its corporate existence.
Christ Embassy UK nets over N10 billion per annum in members’ donations and grants.
