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Last Updated: Friday, 6 June, 2003, 17:08 GMT 18:08 UK
Charity fundraiser in liquidation
Woman being scanned for breast cancer
The cancer charity had its accounts frozen
The fundraising company for a cancer charity being investigated by the Crown Office has gone into liquidation.

Solutions RMC, the commercial fundraiser for Breast Cancer Research (Scotland), has asked the courts to appoint a liquidator.

The cancer charity had its assets frozen last month after it was claimed that only a fraction of money raised went to charitable causes.

Glasgow-based company Grant Thornton has now been appointed provisional liquidator of Solutions RMC after a hearing at Paisley Sheriff Court.

Paisley-based Solutions RMC, run by Tony Freeman, were the commercial fundraisers for Breast Cancer Research (Scotland).

They took the only responsible action open to them of asking for the appointment of a provisional liquidator
Grant Thornton accountants

Accountancy firm Grant Thornton said that it had been appointed a provisional liquidator by the court after "Solutions RMC's two clients, Breast Cancer Relief and Breast Cancer Research (Scotland), had judicial actions taken which has prevented funds due to them being paid".

The statement continued: "The management of Solutions RMC realised that it could be some time before it secures the payments due from its clients and initiated the insolvency process at Paisley Sheriff Court."

Donald McGruther, provisional liquidator and partner with Grant Thornton, said: "The directors of the firm have initiated insolvency proceedings having realised that the timing of the receipt of funds due from both their clients could possibly be delayed, due to the appointment of judicial factors to their only clients.

"They took the only responsible action open to them of asking for the appointment of a provisional liquidator."

Solutions RMC will now be operated by Grant Thornton, who will liaise with Tony Freeman on how the company should be run.

'Misconduct or mismanagement'

Mr McGruther added: "The director will stay the director of the company and is still answerable for the actions of the company."

It was claimed at the Court of Session last month that only 1.5m of the 13.2m raised by Breast Cancer Research (Scotland) in a 15-month period went to good causes.

The judge suspended the charity's trustees and ordered that its professional fundraiser, Mr Freeman, director of Solutions RMC, should not be involved in the management or control of the charity.

The court was told that the Charities Office, a department of the Crown Office, believed there had been "misconduct or mismanagement" in the administration of the organisation.

The Lord Advocate, Colin Boyd QC, told the court the charity had raised 8.8m in income up to March last year and another 4.4m in the subsequent 12 months.

However, only 11.6% of the money had been donated to charitable causes.

The court also heard that Mr Freeman had been paid about 60% of the total income raised in commission.




SEE ALSO:
MSP seeks charity changes
30 May 03  |  Scotland
Charity regulation 'not enough'
29 May 03  |  Scotland
Pledge on charities watchdog
28 May 03  |  Scotland
Charities watchdog call
27 May 03  |  Scotland
Cancer charity accounts frozen
23 May 03  |  Scotland
Charities regulator calls renewed
23 May 03  |  Scotland
Scots dig deep for charity
19 May 03  |  Scotland


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