Charity Commission opens statutory inquiry into whether dissolved charity raised and spent funds

The regulator says it was not informed that Khodam Al Mahdi, an Islamic charity, had been dissolved in April 2012

Charity Commission
Charity Commission

The Charity Commission has opened a statutory inquiry into a dissolved charity that allegedly continued to raise funds and bought a property with that money after its dissolution.

Khodam Al Mahdi, whose activities were Islamic teaching, including through lectures, publications and digital media, registered with Companies House on 23 February 2010, and the company was dissolved on 10 April 2012.

A spokeswoman for the commission said she could not confirm the value of the funds raised, but understood the charity intended to use the property as a mosque. The property had now been placed in the protection of the Official Custodian for Charities, an arm of the commission.

The charity was registered with the commission on 21 July 2010, but had not informed the commission of its dissolution, the commission said in a statement today. Its entry on the register of charities shows it as an active charity.

The commission became aware in August last year that the company had been dissolved. It subsequently found evidence to suggest that money had continued to be raised in the charity’s name since its dissolution, and had been used to purchase a property. The Charity Commission did not disclose the value of these funds or the sort of property acquired.

The investigation, which began on 17 February, is examining the funds raised, whether the former trustees of the charity and the individuals holding the property have complied with charity law and additional concerns around management and financial reporting. The charity’s annual documents for the year to 31 December 2012 were received on 26 April 2012, according to the commission’s register of charities.

Third Sector was unable to contact anyone from the former charity for comment.

The commission will publish a report into the charity once the statutory inquiry is completed.

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