CHARITY bosses are treating payments worth tens of thousands of pounds which were made to a company with two Firstsite trustees listed as directors as a “serious incident”.

Dr Noorzaman Rashid, who chaired the Lewis Gardens gallery’s board of trustees, and trustee Robert Surman, resigned their positions in March amid questions over payments worth about £100,000 which were made to Friary West Ltd, a company which listed both men as two of three directors.

Accountancy firm Mazars was called in to investigate the payments and ascertain whether either man made a personal gain.

A report by the accountants, which has not been made public, appears to have put both men in the clear.

But the Charity Commission will have the final say on how the probe is finalised.

A commission spokesman said: “The trustees have reported a serious incident to the commission and we are aware of concerns about Firstsite Limited’s use of its charitable funds.

“There are circumstances where trustees’ professional connections may bring benefits to a charity’s work, however, it is vital that any conflicts of interest are managed effectively in order to maintain public trust and confidence in the charity.

“We will be assessing information provided by the charity and will be engaging with the trustees to ensure they are acting in line with their legal duties and our guidance.”

There has never been any police involvement in the matter.

The Gazette has tried to contact both Dr Rashid and Mr Surman through Friary West, and other companies which have the pair listed as directors, but no response has ever been received.

We have asked for a copy of the report but have been told it will not be made public.

We also asked Firstsite:

- whether Dr Rashid was interviewed by either Firstsite or Mazars;

- what explanation Dr Rashid offered for the payment;

- whether all of the board of trustees were aware of the payment; and

- whether Firstsite has been in touch with any other organisations which have Dr Rashid listed as a director.

It is understood Dr Rashid was interviewed during the investigation, having missed at least one appointment with the investigative team.

But Firstsite is unable to respond directly to the questions, according to the agreement with Mazars.

A Firstsite spokesman said: "Firstsite’s Board has accepted the findings and recommendations of the investigation by Mazars and is actively reviewing the operation of its procurement policy in light of this to ensure it is effective, supported by robust procurement procedures and with appropriate collective decision-making for high-value contracts.

"Firstsite recognises the importance of accountability when spending and managing public and charitable money, and wants to ensure this is at the centre of our procurement policy.

"Firstsite is aware of the key role that trustees play in the successful operation of the charity and is developing a training programme for all trustees to ensure that they are aware of not only the internal policies and procedures in place at Firstsite but also their wider duties and responsibilities as a charity trustee.

"Firstsite will workwith the Charity Commission on any action it feels is necessary beyond the steps it is already taking."