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Charities losing millions to “bogus” textile recyclers

A major children's charity has revealed a “shocking” rise in the theft of donated clothes, following a six month investigation, writes Caelia Quinault.

In a report published this month, Great Ormond Street Hospital Children's Charity (GOSHCC) revealed that thefts from its textile collection partner Clothes Aid, had risen from half a tonne a month in 2004 to 50 tonnes a week in July 2006.


” This illicit activity is not only detracting from a legitimate charity but is beginning to actively ruin legitimate business. “
– Michael Lomotey, Clothes Aid

The charity said 826 incidents of theft have been documented in the last six months, and that 20 to 30 vehicle loads of stolen clothes are turning up in countries like Lithuania each month.

As well as making the public think they are charity collectors, “bogus” textile recyclers are even stealing specially-coloured bags given to householders by Great Ormond Street for them to donate clothes.

The report stated: “It is not unusual for a whole day's collection to be stolen in any one area, which can weigh up to 10 tonnes”.

Cost
Great Ormond Street is worried that three of its collectors will be put out of business if the thefts continue, costing the charity 200,000 a year.

It predicts that charities will be 6-7 million out of pocket if government and industry do not do more to combat the problem.

In the report, Clothes Aid head of collection protection Michael Lomotey said: “This illicit activity is not only detracting from a legitimate charity but is beginning to actively ruin legitimate business, damage the economy and impoverish a number of individuals.”

Organised
Clothes Aid, which is the sole licensed collector of donations to GOSHCC, found that 40% of thefts were committed by only eight companies.

The companies, who made their own door-to-door collections of unwanted clothing, did not pretend to be charities, but used misleading leaflets to appeal for donations.

However, Mr Lomotey explained that theft was the main means by which these companies acquired recycled textiles.

He said: “Their collections coincide with collections made by Clothes Aid and we firmly believe it is planned in order to allow these operators to steal the charity's bags. The clothing is then transported to the Baltic states, particularly Lithuania and Ukraine, where is it sold for considerable profit.”

GOSHCC and Clothes Aid added: “It is safe to state that intelligence points to a serious level of organised crime.”

Co-operation
Clothes Aid and GOSHCC have now called for a nationwide effort to stamp out illegal collections and thefts.

Concluding the report, Mr Lomotey said: “It is crucial to see co-operation between prosecutors and investigators in order to identify the barriers to prosecution. A clear interpretation of how the theft Act of 1968 can be interpreted in this case is imperative – of the 826 witnessed incidents, only 9 arrests have been made and not one prosecution has taken place to date.”

However, GOSHCC was keen to stress that people should not stop supporting legitimate charities.

A spokesman said: “GOSHCC’s sole collection agent is Clothes Aid, and people can be confident that donations in these bags are sold and the charity receives a very substantial sum.”

Local Authorities
Great Ormond's street's concerns were echoed across the country, as local authorities issued warnings to residents about bogus collectors and charity bag thefts.

In Poole, companies have been using the name of Cycle Aid limited to dupe householders into donating used clothes, while in Worcestershire thieves have been stealing bags left out for legitimate charities.

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Great Ormond Street

Cllr Derek Prodger, cabinet member for environment in Worcestershire council, said: “The people behind this latest scam are abhorrent. Not only are they preying on the kindness and goodwill of the people of Worcestershire they are also jeopardising the future of small charities.

He added: “It is a real shame that people may soon stop donating items for fear of being duped, and real causes may become the real losers.”

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