The Charity Commission has opened a statutory inquiry into two closely related charities that have failed to file their annual documents, amid concerns about the relationship between their trading subsidiaries and a company associated with the trustees.
The charities, called the Achiezer Association and Achiezer, have objects including the advancement of education and religion, and were both previously part of the regulator’s "class inquiry" into charities that have failed to file their annual documents for more than two years.
The regulator announced yesterday that it had opened a separate statutory inquiry into the two charities.
In a statement, the commission said: "The trustees, who are the same for both charities, have failed to comply with the steps taken by the commission to ensure compliance in their reporting duties.
"The continuing failure by the trustees to comply has raised further regulatory concerns outside the scope of the class inquiry, including about the relationship between trading subsidiaries and a company associated with the trustees."
The regulator said the inquiry would examine the administration of the charities by the trustees and "the financial management of the charities to determine whether the trustees have failed to properly manage the charities’ funds".
Achiezer has overdue accounts for each of the past four years and the Achiezer Association last week filed six overdue documents, including its accounts for 2010/11, which were 1,096 days late.
The Achiezer Association had an income of £1.6m and an expenditure of £1.5m in the year to the end of September 2014, documents filed with the regulator show.
It had no income in the previous year, and only spent £8,730. Its income in the year before that was £533,535, with expenditure of £448,932.
Nobody from the charities was available for comment on Friday morning.