High Court throws out case against Camila Batmanghelidjh and Kids Company directors

A judge has said that it was “more likely than not” that children’s charity Kids Company would have survived had it not been for unfounded sexual assault allegations made by young clients of the charity against older clients.

On 12 February 2021 the High Court threw out claims that Kids Company founder and chief executive Camila Batmanghelidjh and seven former trustees had caused the collapse of the charity by mismanaging money.

It had been alleged by the Official Receiver that they had caused or allowed Kids Company to operate an unsustainable business model.

The organisation went into insolvent liquidation on August 20 2015 amid false allegations of sexual abuse which were reported by BBC’s Newsnight – and loss of donor and government money.

Thousands of young people lost their safety net, in the form of shelter and food; and hundreds lost their jobs – though the numbers may never be known because the organisation’s accounts were seized.

In the annual report in 2011, Kids Company said it supported 36,000 clients a year, but in 2015 they handed 1,909 case files to councils.

Ms Batmanghelidjh said of the ruling this week: “It’s the first time someone has objectively looked at the evidence rather than made decisions on rumour.

“I never said things could be perfect – but we were pretty well run. For 20 years we kept kids safe, and we didn’t have any child protection issues on our premises.

“Some 600 staff lost their jobs because basically Newsnight did fake news.”

Police investigated the claims of sexual abuse but failed to uncover any evidence of wrongdoing and the investigation was dropped in January 2016.  The police reported that they had not identified any failings by the charity in its safeguarding duties.

Ms Batmanghelidjh said she was unable to contact or help many of the children they supported because the charity’s records were seized.

She said: “We didn’t reach most of the kids. All our records were taken over – we didn’t have telephone numbers, we didn’t have anything.

“It was horrible for the kids, and no one followed up what happened to these children. It was like their lives were worth nothing.”

A key worker and teacher at Kids Company who does not wish to be named said was able to keep in touch with some of the children by herself and through a food bank set up by Ms Batmanghelidjh – but many slipped through the cracks.

She said: “Many got lost in the process. It was very sad to cut it off at its knees in that way.

“The most important part of the verdict for me was the last paragraph that says had it not been for those false sexaul abuse allegations, Kids Company would still be going.

“Right now, London needs Kids Company. There were two or three families in one flat in a tower block. How on earth are they coping? We used to provide a hot meal and gosh they need it now.”

Duza Stostic, 70, who was Head of Education at Kids Company from 2008 to the end said: “The [clients] were left, many of them, with no support at all.

“There were those who went back to where they were – on the streets. And on the streets, they are recruited by drug dealers, do all sorts of crimes and end up in jail.

“But I’m so glad this judge was so humane. I cried when I read it – and I thought there are still human beings around.”

A psychotherapist who worked for the charity said: “The sudden closure of Kids Company was experienced on the ground as  abandonment – and betrayal by those who sought to destroy this lifeline for vulnerable children and families.

The Official Receiver, who brought the case against Ms Batmanghelidjh and the former trustees, sought to ban them from acting as directors – a six-year ban for Ms Batmanghelidjh and four-year bans for Alan Yentob, Richard Handover, Jane Tyler, Andrew Webster and Francesca Robinson.

The Official Receiver also sought to stop Vincent O’Brien from being a director for three years and Erica Bolton for two and a half.

They claimed that they had caused or allowed Kids Company to operate an unsustainable business model.

Because Ms Batmanghelidjh was an employee of the organisation and not a director, they also tried to prove she was a “de facto” director.

But the judge ruled Ms Batmanghelidjh was not a director – and that if she had, she would not have been found to have been unfit.

The summary of Mrs Justice Falk’s report said: “Whilst aspects of it were high risk, Kids Company’s operating model was not ‘unsustainable’ in principle.

“The restructuring plan was agreed and the further grant was awarded. However, the charity was forced to close following sexual assault allegations which were publicised on the same day that the grant was received, 30 July 2015.

“The charity was exonerated following a police investigation, but by then it was too late. The decision concludes that, if it had not been for the unfounded allegations, it is more likely than not that the restructuring would have succeeded and the charity would have survived.”

Ms Batmanghelidjh said of the future: “I have never stopped working with wonderful children and families and I will never stop. What shape that takes in the future is yet to be crafted.”

A spokeswoman from the BBC said of the Newsnight report: “The BBC stands by its journalism.”

Pictured top: Camila Batmanghelidjh and Alan Yentob