A TROUBLED racial equality group may be shut down at a meeting next week, it has been revealed.

A crisis meeting will be held on Wednesday to talk about winding-up Hyndburn and Rossendale Racial Equality Council, according to an insider.

The claim was made after chairman Bill Goldsmith, said the equality council could close within two months if funding partners pull the plug on cash contributions.

The REC was plunged into crisis in November when director Mohammed Hanif was suspended. His contract expires in March.

An internal investigation into claims that Mr Hanif did not follow correct procedures when purchasing computer equipment is continuing. The group's long-standing financial difficulties are not related to Mr Hanif's suspension. A source said the cash crisis was the result of poor performance and a general lack of investment.

The group has been warned by its partners - Hyndburn and Rossendale Councils, Lancashire County Council and the Manchester-based Commission for Racial Equality - that funds worth a total of £90,000 are set to be withdrawn. It is believed that the REC has been operating at a loss for the last few years and the funding partners no longer consider the organisation financially viable. The lease on the REC's headquarters in Oak Street, Accrington, is also set to run out at the end of March.

In the event of closure, the work of the organisation could be taken over by other groups including the Citizen's Advice Bureau.

Mr Goldsmith said: "It's evident that the funding that has been received from the bodies in the past is now likely to be withdrawn.

"Clearly, one of the things that the REC will have to consider is the possibility of winding up its affairs.

"This would happen at a full meeting of the REC, probably in March."

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