Decision of the Complaints Committee 04928-16The League
Against Cruel Sports v The Times
Summary of complaint
1. The League
Against Cruel Sports complained to the Independent Press Standards Organisation
that The Times breached Clause 1 (Accuracy) of the Editors’ Code of Practice in
articles headlined “Animal rights charity exposed over squandered fortune” and “Dogmatic
industrialist who left charity £3.5m”, published on 29 March 2016, and an
article headlined “Look where the money goes”, published on 30 March 2016.
2. The front-page
article, published on 29 March 2016, reported that the League Against Cruel
Sports had been “saved from financial calamity” by a £3.5million legacy
donation, which it had “squandered” on “a failed prosecution, foreign travel,
hotel bills and pay rises”. It said that the charity had spent £25,000 bringing
a private prosecution against six members of the Lamerton Hunt for illegal
hunting, but the case had collapsed when it emerged that a prosecution witness
had close links to the charity. It also reported that the charity had sacked
two whistle-blowers who had raised concerns about the charity to the regulator.
The second 29 March 2016 article focused on the millionaire who had left his
money to the charity. It repeated the claim that on receipt of the bequest, the
charity had embarked on an “extravagant spending spree”, while the leader
article, published the following day, said that the Charity Commission had
failed in its duty to investigate the charity following information provided by
a whistle-blower, and instead had stated that the issues that had been raised
were matters for the charity’s trustees.
The piece noted that “it matters when a charity fails its donors”.
3. The articles
were also published online.
4. The complainant
said that the newspaper had published several articles about the charity, which
had given an unjustified negative view of its practices. It said that many of
the allegations had been put to the charity before the story was published, and
the charity had made clear that they were without foundation; however, its
responses had been ignored, or given “very short shrift” in the coverage.
5. The complainant
said that the assertion that the charity had “squandered” a legacy donation in
the 29 March, front-page headline was misleading and was unsupported by the
text of the article. It also denied the claim, which had appeared in the
subsequent leader article, that on receipt of the bequest, the charity had
“appeared to lose all sense of proportion and direction”. It said that the
£3.5million bequest had been delivered to the charity in instalments. Since the
delivery of the first instalment, the charity had spent money that it had
raised through its fundraising activities; it had not spent any of the legacy
at the time of publication. It noted that the “failed prosecution, foreign travel,
hotel bills and pay rises” had cost just 5% of the amount left to the charity
in the legacy. There was no evidence to support the leader article’s assertion
that the charity had “failed its donors”.
6. The complainant
considered that the newspaper’s assertion that the bequest had “saved” the
charity had been unfounded. The last instalment of the money had arrived in
January 2016, and the increase in the charity’s bank balance since the donation
had been greater than the total bequest. The charity had cash in the bank and
“free reserves exceeded the amount required under [its] reserves policy”.
7. The complainant
offered to provide evidence from the time of the alleged “squandering” which it
said showed that it had been unnecessary for it to draw on the legacy to cover
expenditure. It supplied a letter from its accountants, which said “at the end
of each month from July 2014 when the first instalment of the legacy was
received until March 2016 the cash at bank exceeded the amount received from
the Hales legacy”. The letter also said that there was no question that wages
could not be paid; the 2014 and 2015 accounts had given no indication of
“financial difficulties”.
8. The complainant
also expressed concern that the newspaper had described the prosecution the
charity had brought against the Lamerton Hunt as a “waste”. The case had been
dropped, but not because of the quality of the evidence. It also considered
that the judge had not found that the charity had acted improperly by not
disclosing its relationship with one of the prosecution witnesses; the omission
of this fact in the coverage had given an unfavourable impression of the
charity, which was misleading.
9. The complainant
said that the suggestion that two individuals had been dismissed for
whistle-blowing was inaccurate. The concerns raised by two members of staff had
been properly addressed by the charity’s trustees.
10. While the complainant noted that the 29 March,
front-page article had included its rebuttal of the allegations, given the
headline and the length of the piece, the article overall was misleading. It
noted that no such denial had been included in the leader article, giving the
impression that the information regarding whistle-blowers in the previous day’s
article was fact.
11. The newspaper said that it had been alerted to concerns
about the charity in December 2015, and its Investigations Editor had
interviewed a confidential source and reviewed a large amount of documentation
in January 2016. The facts were then checked with several confidential sources
and public records before publication. As it was to rely on confidential
sources, which it had a duty to protect, it said it had taken care to put the
allegations to the charity before publication. It had also contacted each of
the charity’s trustees who had been involved with the organisation during the
period covered by the allegations.
12. The newspaper said that the articles had accurately
raised serious questions about the way in which the charity had spent money
since it had become entitled to a substantial legacy. The Director of Marketing
and Fundraising had formally told the charity that the legacy was “at risk of
being wasted”, and the articles had given several examples of significant
spending by the charity, which appeared to have been prompted by the bequest.
13. The newspaper considered that it had accurately
characterised the expenditure as a “spending spree”. It noted that if the money
spent had represented 5% of the total bequest, as claimed by the charity, it
had amounted to £175,000. It said that internal papers had shown that money
from the bequest had also been used to cover spending deficits.
14. The newspaper considered that the articles had clearly
set out why the private prosecution of the Lamerton Hunt, which had cost the
charity £25,000, had failed; and the coverage had included the charity’s
position that two senior barristers had assessed the evidence and had concluded
that there had been a “realistic prospect of conviction”.
15. It said the references to foreign travel had concerned
the charity’s trips to campaign against the shooting of wild birds in Malta.
Two senior members of staff had visited Malta three times in 13 months, and the
Vice President had visited twice; the campaign had failed. It said that on the
Charity Commission website, the charity had stated that it “only operates in
the UK”. It noted that its front-page article had stated that the charity had
justified its trips to Malta because the birds it had wished to protect had
been flying towards Britain.
16. The newspaper considered that the 10% pay rise, which
had been given to staff in May 2015, had been many times in excess of
inflation. In addition, it said that one trustee had stayed at a hotel at a
cost of £200 a night, when the charity’s written policy had stated that
trustees should stay in “budget rooms”. The same trustee had also been allowed
to claim expenses for taxis, when the charity’s policy said that trustees
should use public transport.
17. The newspaper also considered that a “serious example of
money being squandered by the charity” had been the payment of £12,000 to its
Chief Executive for his criminal defence costs after he was arrested and
charged for his involvement in a pub brawl. This was expenditure that the
charity had not declared to the regulator.
18. The newspaper said that it had seen a transcript of a
grievance hearing between a whistle-blower and management, which had made clear
that the charity had been aware that the whistle-blower had brought concerns
about the organisation’s governance to the attention of the regulator. The
charity had terminated the whistle-blower’s employment, as well as that of a
second member of staff who had “protected status as a whistle-blower”. In
addition, when the charity’s President had written to trustees about “internal
problems” that were causing him “grave concern”, the board had removed him from
his post. The newspaper noted that the articles had included the charity’s
position that the President’s tenure had been at an end, and its denial that
any member of staff had faced detrimental treatment for whistle-blowing.
19. With regards to the complainant’s denial that the
bequest had “saved” the charity, the newspaper said that internal
communications had shown that the charity needed to receive more of the legacy
to prevent its cash balance falling “very low”. During his exit interview, the
Director of Campaigns had expressed his concern that the charity was being led
“down a path of ineffectiveness, irrelevance and potential bankruptcy”. It said
that internal memos had also shown that the charity had been in need of money;
it referenced an email, which had also been quoted in the coverage, in which
the charity’s former Chief Executive had said “F**k have we got enough money to
pay the wages next month”. An accountant had responded by saying that cash
“looked tightish September onwards but will of course be topped up by the
interim payment on the legacy”. The newspaper said that the charity’s reliance
on the legacy to keep it in “the black” had also been reflected in a
spreadsheet detailing the charity’s income and expenditure. In late 2014, an
official had also written “Assuming there is a further distribution from the
Hales legacy in February then cash balances should not cause concern…Should
however no further distribution from Hales be received in the first 6 months
then cash balances would be very low”.
20. With regards to the letter provided by the charity’s
accountants, the newspaper said that their position that “cash at bank always
exceeded the amount received from the Hales legacy” did not prove that the
charity had been in good financial health. It said that a line drawn in the
accounts had shown that deficits were turned into surpluses by adding the
legacy money to the calculation. It noted that the accounts had been prepared
in the knowledge of the legacy, so there was no reason for them to indicate
that the charity had been facing “financial difficulties”. It said that it had
seen an internal document which showed that the cash in bank before the legacy
was £1,100,000, and that the charity had been projecting annual spending deficits
of around £800,000 and £900,000.
21. The newspaper said it would be willing to consider
publishing a letter from the charity setting out its position that the
expenditure was justified and not prompted by the bequest.
Relevant Code provisions
22. Clause 1 (Accuracy)
i. The Press must take care not to publish
inaccurate, misleading or distorted information or images, including headlines
not supported by the text.
ii. A significant inaccuracy, misleading
statement or distortion must be corrected, promptly and with due prominence,
and — where appropriate — an apology published. In cases involving IPSO, due
prominence should be as required by the regulator.
iii. A fair opportunity to reply to
significant inaccuracies should be given, when reasonably called for.
Findings of the Committee
23. It was accepted that before the legacy had been
received, the charity’s former Chief Executive had emailed its accountants and
had asked whether the organisation would be able to pay staff wages the
following month. In addition, it was accepted that the Director of Campaigns
had expressed concern that the organisation was facing potential bankruptcy,
and that an official had said that cash would be “very low” if the next
instalment of the legacy was not received. In these circumstances, it was not
significantly misleading for the newspaper to assert that the legacy had
“saved” the charity from financial ruin. It had taken care to ask the charity how
reliant it was on the legacy before publication, and it had reported its
position that “we have not yet spent any of Mr Hales’ generous bequest”. There
was no failure to take care over the accuracy of the article on this point.
24. It was not in dispute that following the news that it
was to receive the bequest, the charity had launched a private prosecution
against members of the Lamerton Hunt, which had failed; it had given staff an
above-inflation pay rise; it had paid for trips to Malta for its campaign to
protect wild birds; and it had paid £200 for hotel accommodation for one of its
trustees, when its policy required trustees to stay in budget hotels. The
newspaper had been entitled to its position that this expenditure had
represented “squandering” and an “extravagant spending spree”. The reference to
“squandering” in the front-page headline had not given the misleading
impression that all the money had been spent. The newspaper’s characterisation
of the spending was also supported by the charity’s former Director of
Marketing who had stated that the legacy had been “at high risk of being
wasted”. There was no failure to take care over the accuracy of the article on
this point.
25. The Committee noted the charity’s position that it was
not the legacy that had been spent, but separate money that had been raised
through fundraising. However, the newspaper had been entitled to draw a
connection between the fact of the bequest and the charity’s spending
activities. It had relied on the charity’s internal documents, which it said
had indicated that the legacy was being used to plug spending deficits. Due to
its obligation to protect its confidential sources, the newspaper had been
unable to provide these documents, but it had asked the charity how much of the
legacy had been spent before publication, and it had reported its position that
it remained untouched. There was no failure to take care over the accuracy of
the article on this point.
26. The Committee noted the complainant’s concern that the
newspaper had failed to report that the judge presiding over the case against
the Lamerton Hunt had not found that the charity had acted improperly. However,
the newspaper had accurately reported that the prosecution had collapsed
because the charity’s relationship with one of the witnesses had not been
disclosed. It was not obliged to additionally report that there was no
wrongdoing on behalf of the charity; the omission of this information was not
significantly misleading. There was no breach of Clause 1 on this point.
27. The newspaper had been entitled to report that two
members of staff and the President of the charity, who had raised concerns
about the organisation to the regulator, had their employment terminated, and
the Committee noted that the charity did not deny that all three
whistle-blowers had since left the organisation. The newspaper had taken care
to put the allegation that this related to whistle-blowing to the charity
before publication, and it had reported its position that it “denied that any
individual had been dismissed or faced detrimental treatment for
whistle-blowing” and that the President had been “removed after he exceeded an
expected three-year tenure”. The leader article had made clear that the claims
about the charity, which had been made by the whistle-blower, were allegations
and not statements of fact. There was no breach of Clause 1 on this point.
28. The Committee noted the complainant’s concern that the leader
article had asserted that the charity had “failed its donors”. However, this
was not a reference made specifically in relation to the League Against Cruel
Sports; rather it was a general statement of opinion about the need for the
Charity Commission to properly investigate charities when concerns are raised
about their practices because “it matters when a charity fails its donors”.
Nevertheless, the article had made clear that the criticism of the charity was
based on it bringing a failed prosecution at a cost of £25,000, and engaging in
trips abroad when the regulator’s website stated that it only operated within
the UK. There was no breach of Clause 1 on this point.
Conclusions
29. The complaint was not upheld.
Remedial action required
N/A
Date complaint received: 15/07/2016
Date decision issued: 31/10/2016