THE former chief executive of defunct Redditch charity Step Out Drop In (SODI) is being forced to pay back money owed following allegations of financial mismanagement.

Trustees of SODI are in talks with David Cartwright to determine the sum he will have to repay after the collapse of the charity for the homeless two weeks ago.

Mr Cartwright, who is also Redditch Council Leader, owes the money after incorrectly setting up a non-profit making community interest company as a way of expanding SODI.

By launching the company, SODI would have offered extra services such as debt management and neighbourhood redevelopment work as a way of boosting the charity's income.

But Mr Cartwright failed to follow the correct channels and the money transferred between the two concerns now has to be paid back.

On behalf of the trustees, Steve Powell said: "David Cartwright set up a trading company but it wasn't set up in the correct manner.

''Normally, a charity would own all the shares to its community interest company but in this case, David Cartwright owned them all."

He said negotiations with Mr Cartwright were ongoing and the figure currently being considered was in the tens of thousands of pounds.

Mr Cartwright said: "I set up the community interest company as a way of the charity branching out for the purpose of protecting itself."

He admitted the company was not set up in the correct way and that he was in negotiations with trustees over the sum he should pay back.

"I have made several offers," he added.

The Charity Commission is currently investigating allegations of financial mismanagement within SODI and will publish its findings in the next few weeks.