David Cameron’s Big Society body faces a probe by Government chiefs.
The Department for Digital, Culture, Media and Sport is looking at allegations of mismanagement involving tens of millions of pounds at the National Citizenship Service [NCS] Trust.
The DCMS said it will investigate “governance issues” at the Trust, set up in 2011 to arm teenagers with life and work skills.
It says Michael Lynas, who left as its £150,000-a-year chief this week, got an “unacceptable” exit package which included £15,000 to help him train for a new job and saw him kept as a paid consultant.
When Mr Lynas was appointed Whitehall sources said he was unqualified, and he faced allegations he was parachuted into the role by Mr Cameron after he worked in the then-PM’s policy unit.
Last night it emerged the Department for Media, Culture and Sport was probing “governance” issues and had demanded the training cash paid to train Cameron’s crony be reimbursed to the public purse.
The body has an annual budget of about £180million. Around £1.5billion has been ploughed into it by the government to date.
DCMS has also demanded the NCS cut plans to keep him on as a paid consultant for six months in half.
The news comes as Michael Lynas, whose appointment a decade ago was criticised amid claims he was unqualified to do the job, jets off on a luxury holiday to Bhutan and Thailand to mark the start of his “consultancy” period.
A fortnight ago he announced the promotion of Mr Lynas’ Eton pal Naim Moukarzel to a £108,000-a-year role that senior charity sources say he is not qualified for.
DCMS bosses have also raised questions over the behaviour of NCS chair Brett Wigdortz, who has longstanding ties with Mr Lynas.
Mr Wigdortz founded the education charity Teach First, before becoming chair of the embattled NCS Trust in 2018.
Department bosses are understood to have grown exasperated with his failure to ensure compliance with public spending rules, which triggered the DCMS demands.
The NCS Trust, of which David Cameron is chair of patrons, has been plagued by damning criticisms in recent years.
Sources said the body was doing great work to help young people, but had been badly led down by its management.
About £10million for unfilled citizenship training places is missing for 2018. It is understood a further £20million is outstanding for other years.
The NCS is currently facing a £26million High Court claim from The Challenge, which delivered programmes for young people, went into administration after it pulled funding amid a row.
More than 300 lost their jobs when The Challenge went under after Lynas and his NCS demanded they take up an allegedly flawed IT system.
Senior sources at The Challenge said the organisation was crippled by the new system, which an independent witness said failed to deliver 88% of the capability the NCS promised it would.
They said the charity had started 2019 in rude health, with £10million in reserves, but was left in ruins after NCS actions pulled it apart.
A Department for Digital, Culture, Media and Sport spokesperson said: “Earlier this month we were made aware of an unacceptable exit package proposed for the outgoing NCS Chief Executive.
“We have taken swift action to stop this, and are investigating wider issues around governance.
“A new CEO joins the NCS from Sunday and we are clear that we expect the organisation going forward to be completely focussed on helping level up the country with strong opportunities for young people from all backgrounds.”
A spokeswoman for the NCS Trust said it would not comment about the education history of its employees.
She said the Trust had not seen evidence supporting claims around its alleged IT system failures, and figures had not yet been published in relation to claims an additional £20million for unfilled places was still outstanding.
She said Mr Moukarzel’s promotion had been agreed by Brett Wigdortz and the chairs of the Trust’s People Committee and Impact and Safeguarding Committee.
She said: “The terms of Mr Lynas’ departure were agreed in good faith by the NCS Trust Board in December 2019. In the last few days we have been made aware that we need to review these arrangements.
"We are now working closely with the department to ensure we comply with government procedures.
“Michael Lynas resigned from the Trust to pursue other career opportunities after ten successful years. He was not told to resign and both Mr Lynas and the Chairman of the NCS Trust are clear about this.”
She added: “We acted in good faith and transparently throughout this process and believe we have done the right thing. As a public body we are rightly held to account for our decisions.
"We are reviewing the situation to see what lessons there are and what actions we might take and will work closely with DCMS.”
A Trust spokeswoman said the exit terms “were agreed in good faith” and added: “We will work closely with DCMS.”
