Judges to hear evidence in RAGS fraud case this month

RAGS was set up in 1993 to raise awareness of sustainable waste management and carry out research and development work.

”RAGS detected a fraud, the police were called. They have been pursuing that matter. The fraud involved the removal of some funds from RAGS.“
– Graeme Cunningham, RAGS chairman
The group discovered 13,000 missing from its accounts last year – about a quarter of the group's core funding for the year. This money has since been recovered through the group's bank service.

Graeme Cunningham, chairman of RAGS, confirmed: “RAGS detected a fraud, the police were called. They have been pursuing that matter. The fraud involved the removal of some funds from RAGS, funds which have been recovered from the bank.”

An extraordinary general meeting is to be held next week to go over the group's accounts. The fraud case adds to the troubles of RAGS, which has faced financial difficulties and the withdrawal of funding from the Scottish Executive.

RAGS is currently running no active projects and last year the group was forced to close its Edinburgh office and make its office manager redundant to balance the books.

Overshadowed
Despite 12 years working to raise the profile of recycling, the RAGS executive said in a statement to its members that its activities have now been overshadowed by those of larger organisations, including SEPA, WRAP and the Scottish Executive.

The executive said the difficulties it was facing was a sign of its success in raising the profile of waste and recycling. The executive is now surveying its members to consider its future.

Mr Cunningham told letsrecycle.com: “RAGS has been in a position where it has been providing information for its members for over ten years now. The market has changed quite significantly since then, so the position of RAGS needs to be re-appraised.”

At a recent annual general meeting, a slim majority of RAGS members voted against just completing legal liabilities and winding up the group. But, with only 17 out of 102 members present at the meeting, the vote did not stand. A survey to consider the views of the wider membership is being carried out and could see RAGS developing into a new role.