Scotland's charity watchdog has launched an investigation into the Prince's Foundation after reports that a £100,000 donation from a Russian banker was accepted before being rejected by the charity's ethics committee. The Office of the Scottish Charity Regulator (OSCR) announced the probe following claims that the donation from Dmitry Leus, a businessman with a past money-laundering conviction, was initially welcomed by Prince Charles.
The Prince of Wales wrote a letter to Leus in May last year expressing gratitude for the offer and proposing a meeting after the Covid crisis, according to reports. However, the foundation's ethics committee later declined the donation after discovering Leus had been convicted of money laundering in Russia in 2004, a conviction later overturned. Leus has stated he was the victim of a politically motivated prosecution.
The OSCR stated it has been working with the Prince's Foundation to understand the use of funds and the trustees' investigation into the issues raised. The regulator has written to trustees informing them of a formal investigation under the Charities and Trustee Investment (Scotland) Act 2005. The watchdog emphasised that charity trustees must ensure all funds are spent in achieving the charity's purposes and comply with legal duties.
The development comes amid a separate cash-for-honours controversy involving Prince Charles's close aide Michael Fawcett, who temporarily stepped down as chief executive of the foundation. An independent investigation is under way into allegations relating to Fawcett, who supports the process. Clarence House has stated that the Prince of Wales fully supports the investigation and had no knowledge of the alleged honours scandal.
