By Chris Williamson-
The Chief Executive Officer and a director of Broken Rainbow LGBT Domestic Violence Service (UK) Limited (Broken Rainbow), Jo Harvey- Barringer, has been banned from her premiere role as director of the company.
The Sussex based former director was banned for tax evasion, and is not allowed to be involved either directly or indirectly with in the promotion, formation or management of a company or limited liability partnership without the permission of the court. The charity collapsed in June last year amid claims of lavish spending on first-class travel, flowers and iPads . The National Audit found that over a 15 months, a third of payments from the charity’s bank account went to its chief executive officer Jo Harvey Barringer, who was paid more than £57k a year.
Broken Rainbow was incorporated in January 2004 to provide a telephone helpline service to members of the LGBT community who had experienced domestic violence, initially in London but also from premises in Manchester (from 2015). Broken Rainbow was the only UK-wide charity supporting lesbian, gay, bisexual and transgender domestic abuse victims, and had been surviving “hand to mouth” for years, the National Audit Office said.
A damning report by spending watchdog the National Audit Office found officials even deleted financial records remotely after computers were seized by liquidators. Jo Barringer who was supposed to have been the shining star of a company set up to protect LGBT victims, instead is a fallen hero of the company.
Leaked reports from Buzz Feed reporters in 2016 revealed that grants worth tens of thousands of pounds from big funders such as the Home Office and Comic Relief were spent within 24 hours of payment. A treasurer for the charity also quit within weeks of being appointed, warning the board of trustees that “restricted funds” had been “misspent”, and that this could amount to “illegal activity”. The small charity set up in 2002 which claimed to help 10,000 people a year was on the brink but still demanded ”£25,000 within 48 hours” to avoid imminent closure in 2016. Endorsement from high-profile and celebrity supporters including Sir Ian McKellen, Caroline Lucas, and Stephen Fry should have sustained the company.
It found over 15 months a third of payments from the charity’s bank account went to its chief executive officer Jo Harvey Barringer, who was paid more than £57k a year. The charity had various funding streams but relied heavily on funding provided by the Home Office. Home Office funding was not guaranteed and was often delayed causing cash flow issues.
At the start of 2016, following further delays in Home Office funding and a review of the charity’s financial stability, it became apparent that payments had not been maintained to HMRC in respect of the charity’s PAYE debt.
In addition, charity Trustees expressed serious concerns over how it could continue to deliver its services and sought advice from an Insolvency Practitioner. The charity was placed into creditors voluntary liquidation on 5 July 2016.
Between December 2014 and May 2016, payments amounting to £143,671 were made to Jo Harvey- Barringer, at a time when only £3,490 was paid in respect of the PAYE liability incurred during that period. This included a single payment of £12,500 made to her on 08 April 2016.
Anthea Simpson, a Chief Investigator with the Investigation and Enforcement Services, of the Insolvency Service said:
This ban should serve as a warning to other directors, particularly to those operating in the charity sector, that Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes.
Deliberate neglect of tax affairs whilst paying others is not a victimless action,3 as it deprives the taxpayer of the funds needed to operate public services and if they put their own needs before them they could be investigated by the Insolvency Service and lose the privilege of limited liability trading.
On 6 June 2018, the Secretary of State accepted a disqualification undertaking from Jo Harvey-Barringer, after she admitted failing to make payments to HMRC, while continuing to make payments to herself and other creditors..