A charity in Harrow is continuing to solicit donations to build an education centre on an industrial estate, three years after being told the council would not allow it.
A Harrow Times investigation has uncovered a rift between leaders of the Sri Lankan Muslim Cultural Centre (SLMCC), in Whitefriars Avenue.
The charity borrowed money from its members to buy an industrial site and build an education centre.
But almost four years later, Harrow Council says no planning application for an education centre has been submitted.
Instead, the charity has rented the site to an auto-repair company on a ten-year lease.
Split
When we sent questions to SLMCC's email address, we received two conflicting responses.
The first, from president Segu Razeen's personal email account, downplayed concerns.
The second, from SLMCC's official email account, was signed by SLMCC's secretary, two of its trustees and two assistant treasurers.
They said Mr Razeen had responded “without any consultation of the board of trustees”.
“This organisation has serious governance issues," they wrote.
“A number of trustees have raised concerns about this project and was never taken seriously."
According to Charity Commission records, SLMCC has 15 trustees in total.
Mr Razeen said that "the majority of trustees" supported his response and were unaware of any governance issues.
Loan
In June 2019, SLMCC spent £2 million on 2A Tudor Road, near the Barratt Way Industrial Estate.
A valuation commissioned by SLMCC before the purchase had given a market value of £1.6 million.
According to SLMCC’s website, the site was bought in part with a Quard Hasana (an interest-free loan).
One ex-trustee said this loan came at least in part from some of the charity’s members.
Asked how many had contributed to the loan, the five leaders who jointly responded to the Times said they had repeatedly asked this question and been refused an answer on grounds that it was “sensitive and confidential”.
Mr Razeen did not respond to this claim, but said "all documentations have been done correctly, standard accounting procedures have been followed and these accounts have been audited by professional independent auditors."
Covenant
Those who contributed to the loan did so in order to help build a “Higher Islamic Educational Institute”.
But Land Registry documents show that there is a restrictive covenant on the site, blocking its use “as a school, private asylum, hospital or charitable institution”.
The Times has seen evidence that SLMCC knew this before buying it.
A solicitor warned in December 2018 that this was “potentially fatal”.
A barrister added that SLMCC “should not complete until this is resolved and ideally should apply for planning before".
But SLMCC purchased the site without first applying for planning permission.
Mr Razeen said the charity had been “provided with sufficient evidence that the covenants would not impede the proposed development”.
Council
However, in 2020, SLMCC sought “pre-application advice” from Harrow Council about building an education centre.
It was told that the proposal “would not be supported”.
The site was “locally significant industrial land” and there was no “compelling evidence” supporting its development into anything else.
Harrow said any potential benefits were “not considered to outweigh the harm” of losing the industrial land.
Asked about this, Mr Razeen said: “We have encountered challenges with regards to planning permission and we are working to resolve the issue.”
But according to the five other SLMCC leaders who responded, there is no sign of resolution.
They said some trustees had suggested, in light of the covenant and council advice, that the site be sold to repay the Qardh Hasana.
But, they said, SLMCC had instead let part of the site to an auto-repair firm on a ten-year lease.
Mr Razeen said it had done so “to ensure that the charity benefits from the property”.
Donations
Meanwhile, as of Monday, February 28, SLMCC was still soliciting donations on its website towards “planning and architectual work” for the education centre.
Its bank details were posted online so donors could make one “lump sum donation” or “sign up for a regular standing order”.
The webpage did not mention the restrictive covenant or the 2020 council advice.
Questioned about this, the five leaders who jointly responded said they would raise it at the next board meeting.
Mr Razeen said: “We are keeping in touch with our stakeholders and updating them on the initiative’s progress and developments, including the renting of the property and our Qardh Hasana loan position.
“Due to Covid pandemic, our progress was hindered by nearly two years.”
He added: "We undergo annual audits carried out by professional and independent auditors. We are dedicated to maintaining transparency and all relevant information is made available to the public."
The Charity Commission said it was “aware of potential governance concerns” and was “assessing information to inform our next steps”.
Did you loan money to SLMCC for its new education centre?
If so, we would like to hear from you. Please answer these questions and a reporter will be in touch.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel