Financial problems remain at Barnet Racial Equality Council (BREC) despite the reinstatement of its director.

At a meeting on Monday, executive committee members decided Emkay-Magba Kamara's recent suspension was "null and void" as the correct procedures had not been followed.

It also resolved to pay the director's wages for June which had previously been withheld.

However, financial clouds were gathering at BREC where Mr Kamara has been director for the last 11 years.

Barnet Council Leader Alan Williams confirmed this week that it had ceased funding the organisation in Friern Park, North Finchley, nine months ago: "The council has been working very closely with BREC in an effort to stabilise BREC and enable it to fulfill its function needs in the borough," he said.

"That work hasn't been very successful and therefore BREC has received no funding other than a small payout in June this year to enable two staff members [not the director] to be paid for that month."

A council spokesman said only half the grant £29,000 was paid in the last financial year as posts were not filled and the organisation failed to meet the council's requirements of submitting quarterly returns on time.

Mr Kamara has been off work for the last seven weeks suffering from hypertension. He denied last week's reports that the Commission for Racial Equality (CRE) ceased funding BREC in March.

"They [CRE] haven't withdrawn funding as far as I know," he said.

"They're giving notice that if certain things aren't done they'll withdraw it. As far as I know accounts have to be dealt with treasurers and staff have nothing to do with accounts."

The CRE confirmed funding been withdrawn in March and all future funding depended on meeting a deadline later this month.

A spokesman added: "We're giving BREC a deadline of July 20 to send audited statements of accounts to us otherwise we'll cancel our whole funding programme with them."

BREC Chairman Ashitey Ollennu added: "Members want to stress we're all fully supportive of the aims of BREC. Asians have not left BREC.

"The treasurer's from the Asian community and there are nine Asian members in the committee. Should BREC be closed it would be an absolute tragedy."