The Shane Warne Foundation is to close amid an official investigation into the charity's financial and reporting practices.
The Australian cricketer established his philanthropic foundation in 2004 but its operations came under scrutiny from the Consumer Affairs Victoria (CAV) watchdog last October, after it failed to submit an annual statement.
A spokesperson for CAV told the Australian media last week that it had "made a number of requests for the required financial information, however, what was provided was not sufficient. Because of this, on 24 December 2015 the director of CAV... issued a formal request with The Shane Warne Foundation for an independent auditor's report on its fundraising activities for the past three-and-a-half years".
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According to The Guardian, the audit is scheduled for completion at the end of February, but the foundation has already made the decision to cease operations, citing "recent, unwarranted speculation".
When news of the CAV investigation broke, Warne posted a message on Facebook strongly denying any impropriety. "This is a disgrace and absurd," he said in a 600-word statement. "We have absolutely nothing to hide... go through everything you want at anytime as we have nothing to hide, but you pay for it, as the foundation would rather spend the 10,000 dollars on children in need than on an audit."
He added that the foundation, which boasts film star Russell Crowe and actress Elizabeth Hurley as its patrons, had distributed $3.8m (£1.8m) of the $7.8m (£3.8m) it had raised in its existence. Before it winds up, the total amount given away would exceed $4m (£1.9m).
The Guardian reports that financial records obtained by Fairfax Media last November allegedly reveal that the charity "raised $1.8m between 2011 and 2013 but donated an average of only 16 cents per dollar to institutions caring for sick and underprivileged youth". The foundation disputes these figures, saying the average amount donated was 30 cents per dollar in 2014.
Fairfax also claims that Warne's brother, Jason, the foundation's chief executive, received in one year a "salary of $80,000 [£40,000] but only distributed $54,600 [£27,000] to its beneficiaries". In addition, there are allegations that more than $300,000 (£149,000) was spent on hospitality and prize-giving even though the charity was posting sizeable annual losses.
Despite his decision to close the foundation, Warne has gone on the offensive, declaring his dismay at the "malicious attacks and false allegations about the Shane Warne Foundation".
He said: "It's a real shame that certain journalists are continuing this ridiculous crusade/personal vendetta against the foundation."
