'I am being silenced': Charity boss launches blistering attack on the Government after being forced out in a row over £3m in public funding

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The high-profile boss of a government-backed charity has accused ministers of trying to 'silence' her after she was forced out of her job in a row over public funding.

Camila Batmanghelidjh confirmed this morning that she was standing down as chief executive of the charity Kids Company after the government allegedly refused to hand over any more public money until she quit.

The charity has suffered severe financial problems and is reliant on taxpayers for around 20 per cent of its £20million funding. Government officials have become increasingly alarmed at the state of the charity and refused to sign off any more cash until she was replaced.

Ms Batmanghelidjh this morning insisted the complaints over her management of the charity were a 'red herring' and claimed the Government wanted to silence her for criticising its record looking after vulnerable children.

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David Cameron was embroiled in a furious public row this morning after high-profile charity chief executive Camila Batmanghelidjh (right) lashed out at the government over claims she was being forced out of her job

Ms Batmanghelidjh said: 'This argument has emerged recently because Government is not facing its responsibilities robustly.'

She denied the charity was badly run and insisted she had always planned to leave her role as chief executive next year.

Last night, she blamed the row on 'some ugly games' adding: 'The facts are that the vulnerable children of this country remain largely unprotected. There's no point in shooting the messenger if the message is uncomfortable.' 

She added: 'I am being silenced.'

Her charity Kids Company is currently being run in temporary accommodation on an upper floor of an investment bank in the City of London.

According to Ms Batmanghelidjh, the charity 'nearly went bust' recently but was given a temporary lifeline when well-known artists including Antony Gormley, Tracy Emin and Anish Kapoor donated works to raise money for it.

Ms Batmanghelidjh this morning accused the government of concocting the row to hide its failure to protect vulnerable children

Speaking this morning the charity chief said: 'We have been debating with Government and having a challenging discussion because Kids Company is taking care of far too many mentally ill children and children who are not being protected robustly.

'Our discussions with Government has been a charity cannot carry this load and they have been sometimes uncomfortable discussions, which has made the Government understandably, potentially, uncomfortable with the message.

'We have had audits in the last 19 years, all of them have been clear. We have raised £150 million worth of money where we have had to process and report on it.' 

But asked if she would stand aside and take another role at the charity, Ms Batmanghelidjh said 'of course'.

Cabinet office minister Oliver Letwin is understood to be demanding changes at the charity before more public cash is offered

She said: 'My interest is to make sure the children are OK. But what I am trying to explain is these arguments are being put out to avoid the real discussion which is there are large numbers of children who are unprotected in this country and who are not receiving appropriate help.

'What I am trying to explain is since the Blair government we have received repeated government funding - if we were so dysfunctional and we were not reporting and accounting for things, why have several governments given us money?

Ms Batmanghelidjh challenged Government officials to bring forward a list of problems if there were genuine concerns about her running of Kids Company.

Of the Prime Minister, she added: 'I pray to God it is not coming from David Cameron and his team, I still have to have faith he wants to do the right thing by children.'

The charity was founded by Ms Batmanghelidjh in 1996 and provides support to vulnerable inner-city children, young people and families.

The BBC said the charity's latest accounts show it relies on the Government for £4 million of its £20 million funding. Newsnight reported that, in order to meet the Government's funding ultimatum, officials have suggested Ms Batmanghelidjh should take the non-executive position of 'president'.

Mr Cameron, who has shared a platform with Ms Batmanghelidjh in the past, has previously defended the charity's funding against efforts by ministers and officials in the Cabinet Office and Department for Education to cut it or intervene, the programme said.

Officials indicate that Justice Secretary Michael Gove and Chancellor of the Duchy of Lancaster Oliver Letwin have supported a tougher approach to the charity.

A Cabinet Office spokeswoman said: 'Making sure that every child has the best start in life is our top priority, so we will continue to work with Kids Company to ensure its important work is sustained.'

The development is the latest blow to hit the charity. In March, Kids Company's interim finance director, head of human resources and director of development all resigned amid claims of concerns about its funding and 'high levels of stress within the workplace', the Sunday Times said.