Camila Batmanghelidjh
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Kids Company's Camila Batmanghelidjh: Sex abuse claims were unfounded

28 January 2016 Last updated at 21:26 GMT

Kids Company founder Camila Batmanghelidjh has described how she "burst into tears" when police told her that allegations of physical and sexual abuse at the charity were "entirely unfounded".

Officers carried out "extensive inquiries" into the claims at the now closed south London-based charity, but found no evidence to reach the threshold for criminal prosecution.

Speaking to the BBC's Lucy Manning, Ms Batmanghelidjh denied that the charity had had financial problems.