by DOUG COLLIE
An organisation which has helped hundreds of individuals with mental health issues in the Scottish Borders over more than 25 years has been sequestrated following a catastrophic decision to wrongfully dismiss its service director in 2019.
New Horizons Borders [NHB] which operated from premises in Island Street, Galashiels and received council funding, is one of only four registered Scottish charities to have been 'awarded' bankruptcy by the charity regulator over the last four years. It is now in the process of being wound up after what has been described as its "implosion" during the Covid-19 pandemic.
The sad story of NHB's demise is set out in a redacted report by the Board of Trustees which is available on the website of the Office of the Scottish Charity Regulator (OHCR). A copy of the letter from the Accountant in Bankruptcy (AIB) to the charity is also on the website.
Earlier this year the sacked former service director Laura Lawson was awarded a settlement of more than £32,000 by an employment tribunal. And in 2020 there were mass resignations by staff and board members from NHB.
According to the report to OSCR covering the months April to September 2020 "The period was one of considerable challenges and unforeseen transition for New Horizons Borders.
"The anxiety and isolation of the pandemic and its resulting lockdown had a significant negative impact on the mental wellbeing of our members (beneficiaries of NHB support services), and it must be said, our staff and volunteers.
"Ultimately the pressures on staff and volunteers of developing and delivering 'projects' and services to an ever growing and more vulnerable membership took its toll..."
The report then reveals how the resignation of the charity's manager in June 2020 precipitated the resignation of two members of staff and eight of the trustees on the Board of Management over the period July-October 2020.
A new Board was appointed "to contribute to the ultimate conclusion of the employment tribunal of a former manager; to undertake all necessary administrative tasks involved in achieving a dignified closure of New Horizons Borders".
By March 2021 the lease of the Galashiels premises had been terminated with "kitty" money to be held by another charity, Health in Mind.
The document states: "Now that all funding sources have ceased an application to wind up the organisation has been made to OSCR".
NHB had a financial deficit of £32,000 at the end of the financial year. Support from Scottish Borders Council for core funding ended in July 2020.
"This together with an employment tribunal held in April 2021 which resulted in a settlement due to a former employee has consequently ended up with an insolvency application to wind up the organisation."
In a section dealing with the impact of Covid-19, the trustees' report says: "In our opinion the Covid-19 pandemic was one of two catalysts which ultimately led to what can only be described as the implosion of the organisation.
"The other was a high level of constant background workload and stress resulting from the considerable uncertainty of the outcome of the employment tribunal and its impact on the organisation".
Sequestration was granted to NHB by the charity regulator on August 16th this year.
A letter from the Accountant in Bankruptcy (AIB) to the charity states: "Provided you co-operate fully with your trustee you may expect to be discharged from bankruptcy one year after the date of your bankruptcy award".
An Online Borders directory notice tells readers: "New Horizon Borders is no longer delivering any support services. Similar peer support services will be available from Health in Mind shortly".
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