East London Mosque Charity Warned After £1 Million Investment Loss
So, let me talk about something that's been making headlines and causing quite a stir — the East London Mosque Trust has received an official warning from the Charity Commission over a major financial mishap involving the loss of £1 million. Yes, that’s right — one of the oldest and most respected Islamic institutions in the UK has come under intense scrutiny for what the regulator has labelled as mismanagement of charitable funds.
To break it down, the mosque’s charitable trust made a significant investment — £1 million — into what was described as an NHS-approved supplier, with expectations of a 20% return within just six months. It sounded promising on paper, but the reality took a harsh turn. The company went into administration, and the charity lost the full amount. The decision was meant to be financially beneficial, but it has instead become a case study in failed due diligence.
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The Charity Commission investigated and concluded that the trustees failed to carry out proper checks before committing the funds. What’s more concerning is that this isn’t the first time the commission has warned the Trust about improving financial oversight. The trustees were previously advised to tighten controls and ensure more responsible governance, and unfortunately, this situation suggests those warnings went unheeded.
In response, the Commission issued an Official Warning on April 10, 2025, under section 75A of the Charities Act. This isn’t just a slap on the wrist — the Trust has been given six months to fix its governance procedures, introduce stronger financial controls, and report back on steps taken. An independent review has also been mandated, and they are expected to do everything reasonably possible to recover the lost funds.
This development raises an important point about public trust. When individuals donate to a charity, especially one tied to a religious institution, there’s an expectation that their contributions will be managed with the utmost care and integrity. According to Joshua Farbridge from the Commission, “people put their faith in those running charities to manage those funds in line with the charity’s purpose,” and sadly, that trust appears to have been compromised in this case.
Now, the mosque isn’t just any local organisation — it has been around in some form since 1910, serving the spiritual and community needs of East London’s Muslim population. That legacy makes this story even more disheartening. It’s not just a loss of money — it’s a dent in the reputation and credibility of a historic institution.
So what happens next? The Commission will be monitoring the charity closely, and if adequate steps aren’t taken, more serious regulatory actions could follow. This is a moment of reckoning for the East London Mosque Trust — a reminder that stewardship of public and charitable funds requires not just good intentions, but strong systems, transparency, and accountability.
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