LONDON — Following an investigation sparked by media allegations regarding a Saudi billionaire’s attempt to secure a knighthood and UK citizenship in exchange for donations, Scottish regulators have expressed concerns over the prior management of the King’s Foundation, a charity established by King Charles III.
The Office of the Scottish Charity Regulator (OSCR) released a report on Tuesday, indicating that the former trustees of the charity, which was previously known as the Prince’s Foundation, did not adequately examine various transactions nor effectively supervise the former chief executive of the organization.
The report highlighted that the historical governance of the charity did not consistently meet the required standards. However, it also concluded that there was no evidence of wrongdoing by current or former trustees.
The investigation was prompted by multiple reports from the Times of London in 2021, which detailed claims that Michael Fawcett, who had long served as an aide to King Charles and was then the CEO of the foundation, attempted to facilitate the acquisition of knighthood and British citizenship for a Saudi individual in exchange for substantial donations potentially reaching 1.5 million pounds (approximately $2 million). Fawcett resigned from his position in November 2021.
In 2022, the Metropolitan Police in London launched an inquiry in response to these allegations from the newspaper. They conducted interviews with various witnesses and reviewed over 200 documents but ultimately decided not to pursue any action in connection with the case.
While the Scottish regulators chose not to delve into the specifics of the cash-for-honors allegations, they acknowledged another investigation related to donations from the Mahfouz Foundation, which is run by the Saudi billionaire, Mohammad Marei Mubarak Bin Mahfouz, who was central to the claims.
Earlier findings from their English counterparts revealed that trustees of the Mahfouz Foundation had allowed it to be utilized for transactions that promoted the personal interests of the billionaire. As a result, a former trustee of the Mahfouz Foundation was banned from serving as a trustee for any charity for 12 years. The Mahfouz Foundation has since ceased its operations.
The Prince’s Foundation, founded by Charles in 1990 to promote education, sustainability, and traditional arts and crafts, changed its name after he ascended to the throne in 2022.
Scottish regulators criticized several of Fawcett’s practices, notably his failure to ensure that insurance was maintained on valuable artwork loaned to the charity, which exposed the organization to significant risk. The inquiry emphasized that it was unacceptable for Fawcett not to inform the charity trustees of critical issues as they emerged.
Despite these criticisms, the regulator concluded that, based on the information gathered, they did not view the actions of the former CEO as constituting misconduct.
