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How supermodel Noami Campbell spent charity funds on spas, cigarettes

FP Explainers September 27, 2024, 19:34:33 IST

Naomi Campbell, the British supermodel, was at the centre of a storm after a UK watchdog investigation uncovered widespread evidence of financial misconduct at her charity organisation, Fashion for Relief. It found the charity diverted much of the funds it raised towards personal luxuries of Campbell such as spas, cigarettes and luxury hotel stays. She has now been banned as a charity trustee

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A UK watchdog investigation uncovered widespread evidence of financial misconduct, the 54-year-old model Naomi Campbell has been banned from leading any charity in England and Wales for five years. Reuters
A UK watchdog investigation uncovered widespread evidence of financial misconduct, the 54-year-old model Naomi Campbell has been banned from leading any charity in England and Wales for five years. Reuters

Naomi Campbell, the British supermodel renowned for her reign on global runways, has found herself at the centre of a different kind of spotlight.

After a UK watchdog investigation uncovered widespread evidence of financial misconduct, the 54-year-old model has been banned from leading any charity in England and Wales for five years.

The charity in question? Fashion for Relief, which Campbell herself founded in 2015 to tackle poverty.

In a report on Thursday, the UK’s Charity Commission criticised the organisation for being “poorly governed” and suffering from “inadequate financial management."

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What did the watchdog report against Campbell’s charity and what did the supermodel respond? Let’s take a closer look

Grants used for spas, 5-star hotel stays

The investigation found that Fashion for Relief diverted much of the funds it raised through glamorous fashion events towards personal luxuries rather than charitable causes. Despite raising millions, only a fraction went to grants.

Instead, the money was used for luxury hotel stays, flights, spa treatments, personal security, and cigarettes for Naomi Campbell.

From April 2016 to July 2022, less than 9 per cent of the charity’s earnings went to the intended causes. The Charity Commission labelled some of the expenses “not reasonable.”

One notable example was a €14,800 (Rs.13.84 lakh) flight from London to Nice in 2018, to transport art and jewellery for a Cannes event for the model.

Another was a €9,400 (Rs 8,79 lakh ) three-night stay at a five-star hotel, which included expenses of nearly €7,940 (Rs 7.43 lakh) on spa treatments, room service, and cigarettes for Campbell.

Although trustees claimed the hotel expenses were covered by a donor, no evidence was provided. The Charity Commission stated they “failed to show how these were cost-effective and an appropriate use of the charity’s resources.”

The inquiry report revealed significant issues regarding financial mismanagement and disorganised record-keeping at Fashion for Relief. It noted the charity’s failure to maintain crucial documentation, such as invoices, receipts, and formal meeting minutes. Furthermore, the organisation operated without any full-time employees, relying instead on external advisers for administrative and accounting tasks.

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Unauthorised expenses, unfulfilled promises

Unauthorised expenses and unfulfilled fundraising promises have led to serious repercussions for Naomi Campbell’s charity.

Two of her co-trustees, Bianka Hellmich and Veronica Chou, have been banned from serving as trustees for nine and four years, respectively.

The inquiry uncovered unauthorised payments totalling £290,000 (approximately Rs 3.25 crore) made to Hellmich for consultancy services, which violated the charity’s constitution. Additionally, Hellmich received £26,000 (around Rs 29 lakh) annually for travel expenses over two years.

Although Hellmich proposed repaying the funds, the interim managers appointed by the Charity Commission successfully secured repayments to the charity. They recovered nearly £345,000 (about Rs 3.87 crore), and protection for an additional £98,000 (approximately Rs 1.10 crore) of charity funds.  

These funds have been allocated to settle liabilities and support two other charities: Save the Children Fund and the Mayor’s Fund for London. After the inquiry began, both charities lodged complaints against Fashion for Relief for mismanagement of partnership arrangements.

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Tim Hopkins, who was part of the investigations team, said in a statement: “Trustees are legally required to make decisions that are in their charity’s best interests and to comply with their legal duties and responsibilities”.

“Our inquiry has found that the trustees of this charity failed to do so, which has resulted in our action to disqualify them,” he added.

Further, Fashion for Relief was dissolved and removed from the country’s register of charities this March.

What did Campbell say?

In response to the watchdog’s report, Naomi Campbell expressed her alarm, and told AP, “I’ve just found out today about the findings, and I am extremely concerned. And we are investigating on our side."

She emphasised her lack of control over the charity, explaining, “I put the control in the hands of a legal employer.” This statement came shortly after she was honoured as a knight in France’s Order of Arts and Letters for her contributions to French culture.

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“We are investigating to find out what and how, and everything I do and every penny I ever raised goes to charity,” she further said.

With input from agencies

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