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Kids Company's Camila Batmanghelidjh to step down Kids Company's Camila Batmanghelidjh to step down
(about 1 hour later)
The chief executive of a charity whose government funding has been withheld over concerns about its ability to manage itself is to step down.The chief executive of a charity whose government funding has been withheld over concerns about its ability to manage itself is to step down.
Kids Company had been told by government officials it would not get £3m of funding unless its leader Camila Batmanghelidjh was replaced.Kids Company had been told by government officials it would not get £3m of funding unless its leader Camila Batmanghelidjh was replaced.
Ms Batmanghelidjh told BBC Radio 4's Today programme she had always planned to step down in her 20th year in 2016. The charity said it will appoint a new chief executive because of "unprecedented financial strain".
She denied the charity had been mismanaged. Ms Batmanghelidjh will take up a new advocacy and clinical role.
Ms Batmanghelidjh said she would stay on at the charity in a clinical role. She denied claims the charity had been mismanaged and that this had led to government pressure for a restructure, insisting such claims were a "red herring".
It follows a joint investigation between BBC Newsnight and Buzzfeed, which learned the Cabinet Office had concerns about the charity's ability to run itself.It follows a joint investigation between BBC Newsnight and Buzzfeed, which learned the Cabinet Office had concerns about the charity's ability to run itself.
'Always the plan''Always the plan'
Ms Batmanghelidjh told the Today programme: "What I was always going to do… As a founder I think it is very important to step down and hand an organisation over for other people to run it. Ms Batmanghelidjh told BBC Radio 4's Today programme she had always planned to step down in her 20th year in 2016.
"I was always planning to do that in the 20th year, which would have been next year.
"That was always my plan. We were going to appoint a chief executive to take over the role because that's the right thing to do."
The charity, which started in south London and supports deprived young people and their families, is one of the most high-profile in Britain and regularly hosts leading politicians.The charity, which started in south London and supports deprived young people and their families, is one of the most high-profile in Britain and regularly hosts leading politicians.
It is synonymous with its charismatic leader and founder Ms Batmanghelidjh.It is synonymous with its charismatic leader and founder Ms Batmanghelidjh.
It relies heavily on public funding; in the last set of published accounts, for 2013, the government provided £4m, about one fifth of its annual £20m funding.It relies heavily on public funding; in the last set of published accounts, for 2013, the government provided £4m, about one fifth of its annual £20m funding.
Officials reported that Justice Secretary Michael Gove and Oliver Letwin, minister without portfolio, supported a tougher approach to the charity.Officials reported that Justice Secretary Michael Gove and Oliver Letwin, minister without portfolio, supported a tougher approach to the charity.
'Uncomfortable discussions' Who is Camila Batmanghelidjh?
But Ms Batmanghelidjh said claims the charity was being mismanaged were a "red herring" to avoid the "real issues" - that the government was not protecting children "robustly". But Ms Batmanghelidjh said the government was trying to "discredit" her to distract attention from the fact that it was not protecting children "robustly" enough.
She said: "This is briefing to avoid the real issues... I've repeatedly challenged various governments on the fact they're not protecting children robustly. She said the charity had been audited during the last 19 years, and evaluated by the London School of Economics, and had always been "absolutely impeccable and clear".
"It so happens that the type of briefing they're now delivering is one in which they're trying to discredit me to weaken my argument." She told the BBC's Victoria Derbyshire programme the charity had held "uncomfortable discussions" with the government about child protection, adding "they can get rid of me but it doesn't get rid of the problem".
Ms Batmanghelidjh said the charity had been audited during the last 19 years and had always been "absolutely impeccable and clear".
She said the charity had also been evaluated by the London School of Economics over its management, the way it functions, and its value for money and the LSE's reports indicated it was running at a "very high level of excellence".
Ms Batmanghelidjh said the charity had held "uncomfortable discussions" with the government about child protection.
She told the BBC's Victoria Derbyshire programme: "They can get rid of me but it doesn't get rid of the problem."
'Pocket money''Pocket money'
Asked about claims she handed cash out to children, she said young people needed money for bus fares and the school canteen.Asked about claims she handed cash out to children, she said young people needed money for bus fares and the school canteen.
"Middle class parents give their children pocket money, why does it become a problem when it's a poor child that's being given money?" she added."Middle class parents give their children pocket money, why does it become a problem when it's a poor child that's being given money?" she added.
Labour's acting leader Harriet Harman said the government needed to maintain its pre-election funding promise to Kids Company, which is based in her Camberwell and Peckham constituency, and defended Ms Batmanghelidjh.Labour's acting leader Harriet Harman said the government needed to maintain its pre-election funding promise to Kids Company, which is based in her Camberwell and Peckham constituency, and defended Ms Batmanghelidjh.
She tweeted: Govt shouldn't punish @KidsCompanyUK cos Camilla rightly speaks up about need for more support for children & young pplShe tweeted: Govt shouldn't punish @KidsCompanyUK cos Camilla rightly speaks up about need for more support for children & young ppl
Ms Harman last month wrote a letter to Chancellor George Osborne asking "urgent financial assistance" for the charity.Ms Harman last month wrote a letter to Chancellor George Osborne asking "urgent financial assistance" for the charity.
'Core services'
In a statement, the charity said: "In partnership with a City-based group of philanthropists, the charity is being supported by the new government to create a more sustainable organisation and funding structure that will be better able to tolerate unpredictable income streams in the future.
"Camila Batmanghelidjh, the founder and chief executive of Kids Company will not be leaving the organisation and will assume an advocacy and clinical role after the appointment of a new chief executive."
It added "core services" would still be delivered though it would be "reducing its staff levels".
The government has repeatedly resisted attempts by Newsnight and BuzzFeed to use the Freedom of Information Act to obtain correspondence between the prime minister and either Ms Batmanghelidjh or the charity's chairman, Alan Yentob, the BBC broadcaster and executive.The government has repeatedly resisted attempts by Newsnight and BuzzFeed to use the Freedom of Information Act to obtain correspondence between the prime minister and either Ms Batmanghelidjh or the charity's chairman, Alan Yentob, the BBC broadcaster and executive.
A Cabinet Office spokeswoman said: "Making sure that every child has the best start in life is our top priority, so we will continue to work with Kids Company to ensure its important work is sustainable."A Cabinet Office spokeswoman said: "Making sure that every child has the best start in life is our top priority, so we will continue to work with Kids Company to ensure its important work is sustainable."