Kids Company paid LSE £40000 for positive report

“It’s like a household”, she said.

In a letter to the Daily Telegraph, Mr Rowe said: “I resigned as a trustee of Kids Company of Kids Company in 2006 because of concerns that I had about the management of the charity, which I had previously expressed to its chairman”.

Kids Company closed earlier this month amid allegations of financial mismanagement, drug taking and sexual abuse.

In the first line of the preface to the LSE report, principal investigator Sandra Jovchelovitch, professor of social psychology, describes how, on first meeting Ms Batmanghelidjh in 2007, she was “immediately struck by the beauty and profound truth of her simple message: children recover with unconditional and unrelenting love”.

The fact is that 6,000 vulnerable children now no longer have the support of Kids Company.

When news of the charity’s financial woes broke, Batmanghelidjh said she was leaving the helm, accusing the government of silencing her; the charity closed soon after.

But several commentators have asked how the LSE and other organisations missed numerous problems highlighted by civil servants concerned about the charity’s use of public funding, which amounts to a reported £37 million over the course of its 19-year existence.

In the interview, Batmanghelidjh alleges that in a conversation with Letwin in 2014 he told her that the situation of a chronic lack of funding could not continue.

She said “the kids don’t use the swimming pool” but told the newspaper she had swum there. “[But] at no point did he come back to me and say, ‘£20m is not what I promised'”.

An LSE spokesman said that the report was “not an audit of Kids Company finances or management practices”, but “analysed the model of intervention and care by the charity” with a “particular focus on the psychological impact of Kids Company’s approach”.

An investigation by BBC’s Newsnight and BuzzFeed revealed that £3m of government funding was to be withheld from the charity, unless its leader – Camila Batmanghelidjh – stepped down.

The study, which was often cited by the failed children’s charity as independent evidence that it was a well-run and successful organisation, heaped praise on Kids Company and its founder, Camila Batmanghelidjh. “Why couldn’t they have just given us that money?”

In a statement the Cabinet Office said it would consider requests for extra funding when they were presented to the government. “We have helped a range of staff with a range of things”. “Local authorities will also be reviewing the most high-risk cases on an individual basis to determine what support is required”.