19/5/02
Consumer and Employment Protection Minister John Kobelke today confirmed the Department of Consumer and Employment Protection would oversee the closure of the charity of Perth socialite Rose Porteous.
The closure means Mrs Porteous will not be able collect money as a charity after a breach of the Associations Incorporation Act 1987.
The move follows concerns about by Perth MLA John Hyde about excessive expenses taken from funds raised during charity events.
Mr Kobelke asked the department to investigate the claims against the Rosemarie Porteous Foundation Inc. which were that Mrs Porteous raised $15,860 at a December charity function but the money went to pay expenses of $16,715.
The foundation had originally promised to donate all funds received without deduction for administrative costs when the charity was established.
Mr Kobelke said the department investigation found problems with the advertising of the event to raise money for Fremantle Hospital resulted in the event losing money. The problems were the result of a wrongly-dated advertisement.
The investigation found there had been no fraud or theft and that a later event raised $22,000 that was donated to Fremantle Hospital.
Mr Kobelke said the investigation found the foundation had breached the Associations Incorporation Act, because it had fewer than six members, had failed to hold annual general meetings and did not operate in accord with its constitution.
"Because of this breach, Commissioner Patrick Walker has resolved to cancel the foundation's incorporation," he said.
"Also as a result, the Charitable Collections Advisory Committee will recommend the foundation's charitable collections licence be revoked unless it is handed in by Mrs Porteous."
Mr Kobelke said he had been informed that Mrs Porteous had offered to give up her licence following the investigation.
He said a discussion paper on proposed changes to charities legislation would be released for public comment in the next few weeks.
"The changes will give people making donations the confidence that their money is going to the intended charity and will not be misused or soaked up in administration costs," he said.
"Legitimate charities will welcome the changes, because they will ensure that unscrupulous operators do not undermine the community's confidence in the many good works that charities do."
Minister's office: 9222 9211
