We wanted to update you on our progress in working with Sarah Olney MP to get answers and to clarify some information that has been issued in the public domain by two articles written by John Morgan of the Times Higher Education - https://www.timeshighereducation.com/news/ex-richmond-v-c-files-complaint-against-parent-charity Evidence will be posted in the comments section below.

On January 2nd 2020,  Sarah Olney sent a letter to the CTCF Foundation asking for clarification and to urge CTCF to help find a solution (aka resume funding to facilitate a partnership). On January 10th CTCF via their solicitors issued a response and we have set up a meeting with Sarah tomorrow (January 23rd) to discuss escalation further.

The argument presented by CTCF's solicitors Penningtons Manches Cooper to Sarah and in the press, that Richmond, CTCF and AIFS are “independent of each other” and that they cannot legally donate to Richmond due to financial viability rules placed on UK charitable foundations is false. On the contrary, there is a clear dependency that favours AIFS/CTCF 1) due to the fact that CTCF has a legal charter to financially support the University and 2) CTCF has a direct commercial relationship with the University via its for-profit subsidiary AIFS that contributes a structural deficit to the University by extracting more than it puts in.

Both of these factors directly impact the financial viability of the institution. Richmond itself is financially viable, as certified by audits carried out by independent auditors using criteria CTCF supplied (Richmond has zero debt, strong financial controls and showed growth in recruitment). We believe that the "financial instability" argument was manufactured by CTCF purely by the withholding of charitable grant, Health & Safety compliance, and commercial payments from AIFS in a self-fulfilling prophecy that would enable commercial benefit for AIFS. We strongly believe that AIFS/CTCF are both the cause and solution to Richmond's current situation.

We have credible evidence that this dispute between the University Board of Trustees and the non-profit CTCF is being unlawfully influenced by CTCF's US-based for-profit subsidiary the American Institute for Foreign Study (AIFS), which Sir Cyril also founded, over a series commercial disputes whereby Richmond refused to sign a new service agreement with AIFS.

This new agreement would have violated Richmond's independent governance and the interests of students. It would have forced the University to hand over sensitive information and veto rights relating to key areas including finance, recruitment, program offerings and staffing to AIFS. Richmond's Board rightly refused as to have not done so would open the University up to legal challenges. This agreement and linkage of charitable funding was done so by CTCF Trustees acting on behalf of AIFS.

The majority of CTCF’s board of trustees have a direct financial link to the charity’s commercial entity (attached) and there is a question raised by Richmond alumni about independence of this charity given its board representation and direct commercial relationship (AIFS are the University’s landlords and have contracts with Richmond to delivery study abroad programs). It is our understanding that CTCF trustees also served on the University’s own Board until December 2019, playing an active role in its governance.

Upon learning that Lawrence Abeln had filed a whistleblowing complaint on all of this with the UK Charity Commission, Stephen Rasch, Chairman of the CTCF issued an email refusing to release emergency funding for the University's Spring/Summer 2020 terms unless Lawrence resigned. As Lawrence has the best interests of Richmond in mind, he did so. This demand by CTCF towards Lawrence and Richmond violated UK employment law. Note this emergency funding was issued after having not paid the University in 6 months, alongside delays in H&S spending and AIFS commercial contacts. Without this emergency grant, Richmond would have closed earlier this month.

The following comments by Stephen Rasch to the Times Higher Education are not accurate:

“We feel it does not serve the university’s interests to engage in a public dispute with an ex-employee of the university while efforts are being made by alumni and management to find the resources necessary to secure the university’s future.

“We welcome any credible effort to ensure Richmond’s survival, provided any request for support from the charitable foundation fulfills our goal of providing a public benefit to the deserving underprivileged who would not otherwise have the cultural exchange opportunities our founder spent his life promoting.”

Neither AIFS or CTCF have provided any credible outreach to those of us leading the alumni campaign. Likewise, the Foundation charter makes no reference to " deserving underprivileged". It exists for the benefit of ALL Richmond students. We would welcome them if they so choose to do so regarding concrete funding offerings.

1) Letter sent by Sarah Olney MP on January 2nd - https://www.facebook.com/photo.php?fbid=2706417169451754&set=p.2706417169451754&type=3&theater
 
2) CTCF reply issued by Penningtons January 10th - https://www.facebook.com/photo.php?fbid=2706418566118281&set=p.2706418566118281&type=3&theater

3) Interlocking relationship between CTCF/AIFS and Richmond - https://www.facebook.com/photo.php?fbid=2706419942784810&set=p.2706419942784810&type=3&theater

4) Interlocking Board memberships of CTCF and AIFS showing commercial conflict of interest - https://www.facebook.com/photo.php?fbid=2706421289451342&set=p.2706421289451342&type=3&theater

5) An extract taken from the October Richmond Board of Trustees meeting where CTCF Chairman Stephen Rasch stated charitable funding from CTCF would be tied to Richmond signing a new commercial contract with AIFS as a "package deal" - https://www.facebook.com/photo.php?fbid=2706424529451018&set=p.2706424529451018&type=3&theater

6) CTCF Chairman Stephen Rasch refusing to release emergency funding to Richmond unless Lawrence Abeln resigned - https://www.facebook.com/photo.php?fbid=2706426062784198&set=p.2706426062784198&type=3&theater

7) Note ALL of this is already in the public domain and is legal to share. It is a complicated message for many but the key is -
1) CTCF is a UK charity that 2) operates due to its interlocked Board to protect the commercial interests of its American for-profit company AIFS 3) rather than fulfill its chatter to support its primary beneficiary: Richmond 4) and that CTCF lacks independence as a majority of its members are beneficiaries of its commercial interests. CTCF is the problem, not Richmond. Richmond is doing everything they can to try and find a solution to their funding issue while they pursue new partnerships.