Rhema Church London Caught in Charity Scandal
The Charity Commission has exposed serious misconduct at Rhema Church London, revealing gross mismanagement and misuse of funds. Their investigation found trustees failed spectacularly to protect the charity’s assets or oversee senior staff properly.
£95,000 Spent on Unauthorized Overseas Trips
Founded in 1999 to support Christian causes and help the needy, Rhema Church ran an Evangelical centre in Croydon. But the inquiry uncovered around £95,000 spent on overseas trips to Italy, Greece and Austria without any charity approval or clear purpose. These trips were led by former pastor Martin Phelps.
Personal Expenses Paid from Charity Funds
The probe revealed shocking claims for everyday personal costs—including food, medical bills, vets’ fees and even gym memberships—with no expense policy or financial controls in place. Due to these risks, the Commission froze Rhema Church’s bank accounts back in November 2015.
£300,000 Cheques Paid to Pastor, Risking Charity’s Future
Between 2014 and 2015, cheques totalling £300,000 were paid to the former pastor, with £225,000 transferred into a personal account to cover mortgage interest before being returned—without any guarantees or security. The charity’s poor bookkeeping led to a tax bill of over £543,000 and five years of late accounts submissions.
Regulator Takes Tough Action
- Interim Managers appointed in 2015 to oversee and review charity governance
- Former pastor banned for 10 years from any trustee or senior charity role
- Forced sale of three charity-owned properties to settle finances
Amy Spiller Speaks Out
Amy Spiller, Head of Investigations at the Charity Commission, said:
“Trustees must use their charity’s funds to further its purposes and have strong financial controls to prevent abuse.”
“Trustees at Rhema Church London failed miserably, allowing a former senior employee to misuse funds with no clear benefit to the charity or beneficiaries.”
“I’m pleased the Interim Managers recovered over £136,000 which will now benefit charities with similar goals.”
Charity Shut Down, Funds Redistributed
The Interim Managers decided to wind down Rhema Church, pay off creditors, and pass remaining funds to similar charities. After settling debts, they recovered £136,760.70, distributed to three nearby charities with aligned missions.
Rhema Church London was officially removed from the charity register on 7th June 2022.
