Vet bills ‘unpaid’ through charity mismanagement, probe finds

A dog rescue group failed to pay veterinary bills as it ran up “significant debts”, including more than £200,000 in wrongly claimed Gift Aid, a new report has revealed.

A Charity Commission inquiry found Muffin Pug Rescue, which has since changed its name, was exposed to “unacceptable financial risk” by two trustees who have now been barred from holding similar roles.

The report, released yesterday (5 December), was published more than two years after the commission first revealed its intention to investigate the organisation.

Accountants

It said analysis by the charity’s own accountants had revealed more than £360,000 in costs that they could not confirm were incurred in the course of its work.

The group was also found to owe HMRC around £213,000 for Gift Aid that had been claimed in error, having received slightly more than £250,000 in such payments over a four-year period between 2017 and 2021.

The report added: “The inquiry also established that there were significant debts and county court judgements incurred since 2018 by the then trustees which had been left unaddressed.

“Some of these debts had been incurred in the name of the charity, such as unpaid vets’ fees.”

Disqualified

The inquiry also found two former trustees, who oversaw the organisation’s affairs and have since been disqualified from holding any other senior charity position, were able to “personally benefit” from the charity’s funds.

The report said the pair had lived “entirely rent-free in a sizeable family home” because of unauthorised trustee benefits, while spending on items such as a £7,000 Rolex watch was also highlighted.

The commission also reported that the charity, which changed its name to Pug Life Rescue in late 2023 because of reputational damage, had established “robust financial controls and policies” since the removal of the barred trustees.