Spent 1.45 million on Rehman Foundation research – VG

Last week, it was announced that IMDi will withhold 3 million kroner in state support for 2020 to the controversial Born Free foundation.

– Thorough investigations of the foundation’s finances show clear and systematic violations of the preconditions for grants, IMDi director Libe Rieber-Mohn explained to VG.

The background is that the government announced on September 21 that it would cut support for “Born Free.” The foundation is said to have used portions of the state support they received for purposes other than those for which they received support, and lacks sound financial management, according to a report by Ernst and Young, according to a government press release.

But on October 6, the foundation sent a response to IMDi, and during a press conference, Rehman responded harshly to both the report and those who had notified the foundation. The Born Fri leader received support from various experts and IMDi released a new review.

Expensive audit

Now an insight that VG has received on the invoices EY has sent to IMDi shows that the audit has become expensive: the first round cost 298,338 crowns, the next 482,551 crowns and the last invoice was 687,736 crowns.

In total, therefore, it has cost NOK 1,468,625 to use the private consulting firm to investigate whether Født Fri has messed with finances.

– It is expensive to audit, but the alternative is that we do not detect non-compliance with the guidelines for government grants. Processing of the case has now been completed by IMDi. The decision can be appealed to the Ministry of Education and we refer there for comments on any appeal process, writes the director of communications and public relations Katarina Heradstveit to VG.

Frode Skårmo Krabbesund at EY has previously explained to VG that they cannot comment on a report they have submitted.

– Expensive and unnecessary

Shaban Rehman responds that the audit has been very expensive.

– Especially that after the first audit more than a million tax dollars have been spent to confirm a report that we think we rejected. We think it was expensive and unnecessary, Rehman tells VG.

Rehman has previously admitted to VG that the Born Free Foundation can improve financial routines, but claims that there has been no financial mismanagement and that nothing illegal has happened.

EY first recommended to IMDi to report the matter to the police, but after further review, IMDi concluded that there will be no police report.

Will complain

Rehman says the foundation has been supported by two attorneys who will work for the organization free of charge with a new answer.

– We plan to present a complaint of the case to the ministry and the civil ombudsman, says Rehman.

Petter Gottschalk, an economics professor at BI, is one of those who has criticized the EY report and believes it is based on several misconceptions. In a written comment sent to VG, he expresses his surprise that IMDi has spent so much money on an external audit.

– IMDi cannot be a solid professional leadership in following up on state supported foundations. Normally IMDi itself should have had the competence to investigate Born Free. Instead, EY’s bill has grown dramatically over the fall from work that has been sacrificed by various professionals, Gottschalk says.

“Born Free” was established in the fall of 2017 as a foundation with the aim of working against negative social control and equality between genders, religions and ethnicities.

Since 2017, the foundation has received just over NOK 15 million in grants from the state budget and through grant schemes managed by the Integration and Diversity Directorate (IMDi), including as a national resource environment.