The Commissioner of Consumer Protection has stripped WA children's charity Strike-A-Chord of its licence.
After a lengthy investigation, commissioner Anne Driscoll found financial irregularities in the management of the music-based charity run by events promoter John Zaccaria.
"The investigation concluded that the financial reporting of the charity did not have a satisfactory level of accuracy, transparency and detail," Ms Driscoll said.
"While there appeared to be a genuine endeavour to assist disadvantaged children, our main concern was that there was not sufficient independence between Strike-A-Chord and profit-making companies supplying services to the charity."
In July, _The West Australian _revealed that the charity, which was behind the 2010 visit to WA of billionaire Richard Branson, collected $1.5 million that year but gave just $41,000 to its cause.
It was a paltry sum compared with the $915,729 collected by the Branson event, which came at an operating cost of $904,128.
A ball in that financial year cost $367,448 to run and collected $352,095. There were also donations to the charity totalling $286,426.
Since 2008, Strike-A-Chord has been licensed to raise money to organise musical tuition for sick children and to buy instruments.
"While the charity employed people with expertise in event management, it lacked expertise in financial management," Ms Driscoll said.
In a statement, Mr Zaccaria said: "Strike-A-Chord wants to vigorously reinforce its determination - now that the inquiry is over - to continue with its important work and in coming weeks all members, sponsors and supporters will be kept abreast of a number of structural changes aimed at improving the charity and its operations."Another charity involving children with cancer - Lighthouse Laboratories in Midland - has also had its licence revoked. Ms Driscoll said it had mismanaged funds, failed to carry out its charitable purpose and did not have independent governance practices in place.
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