UK Freezes Bank Accounts Linked To MFM Over Alleged Financial Misconduct

The Charity Commission for England and Wales has frozen the assets of Mountain of Fire and Miracles Ministries International (MFM International), the UK branch of the Nigerian church founded by Dr Daniel Olukoya, over what it described as “serious financial mismanagement and governance failures.”

According to a report released by the Commission on Monday, investigators uncovered widespread misuse of church funds, poor oversight, and weak internal controls that allowed local branches to operate independently without accountability. 

The regulator said these issues posed “substantial risks to charitable assets and undermined public trust.”

The Commission revealed that trustees of MFM International had no effective control over more than 100 bank accounts run by individual branches across the UK. 

“Branches were making major financial decisions, including property purchases and leases, without authorisation or proper oversight,” the report stated.

Founded in Nigeria by Dr Olukoya, MFM International expanded rapidly in the UK, growing from a few parishes to over 90 locations. 

However, regulators said this growth came “without corresponding governance structures to ensure transparency and accountability.”

The inquiry, which began in 2018, found that Olukoya, referred to as “Trustee A” in the report, exercised excessive influence over the UK charity, including the power to appoint and dismiss trustees. 

This setup, according to the Commission, “rendered independent governance impossible and eroded trustee accountability.”

In addition, some trustees appointed by Olukoya were also paid employees of the church, a clear conflict of interest under charity law. 

The Commission noted that this practice persisted until July 2024, when the church finally amended its constitution to limit the General Overseer’s control.

During inspections, regulators found that several MFM branches opened bank accounts and handled donations without informing the central board. 

One account reportedly held large sums of money “with no clear explanation for its purpose,” prompting a freezing order in early 2022.

Due to the scale of mismanagement, the Commission appointed Dr Adam Stephens of Evelyn Partners LLP as Interim Manager in 2019 to oversee the church’s operations and financial recovery. 

However, the trustees resisted the move, resulting in a legal challenge before the First-Tier Tribunal.

Although the tribunal acknowledged evidence of misconduct, it ruled that the Interim Manager should work alongside the trustees instead of excluding them completely. 

Over five years, the management intervention cost more than £1 million in fees and VAT.

The report also criticised MFM International for repeatedly filing late annual returns and financial statements, with some reports delayed by more than five months. 

Branches were further accused of taking out loans and signing property deals without the trustees’ knowledge, exposing the church to financial and legal risks.

“The lack of financial oversight and internal control constitutes serious misconduct and mismanagement,” the Commission concluded.

In its most recent filings for the year ending December 2023, MFM International reported an income of £2.71 million and expenditure of £2.19 million, with roughly 50 branches currently operating under local pastors across the UK.

A spokesperson for the Charity Commission said the asset freeze was necessary to “safeguard the charity’s funds and ensure reforms are properly enforced.” 

The regulator added that although MFM has since taken steps to restructure its management, the case should serve as a warning to other religious charities.

“This inquiry highlights the need for trustees to maintain financial transparency and proper oversight,” the Commission stated. 

“Charitable funds must only be used for legitimate purposes, and any deviation could amount to criminal misconduct.”