The Charity Commission has launched a statutory inquiry into the Islamic Human Rights Commission Trust amid concerns over funding it has handed to a non-charitable company.

The regulator has been involved with the charity since May over its involvement in publications and events organised by the firm.

Complaints also being looked at include allegations that “inflammatory statements were made” at one of the events the charity had funded.

“The Commission is investigating whether support of the event was in furtherance of the charity’s objects,” it said.

It adds that it has escalated its probe to a statutory inquiry after reviewing the trustees answers to “a range of questions to understand the charity’s involvement in these matters, and its wider relationship with the non-charitable company”.

The regulator’s inquiry will look at the trustees’ administration, management and governance of the charity and whether they have complied with their legal duties.

The specifics of the relationship between the charity and the firm will also be probed, including whether this relationship benefits the charity and how trustees are managing the relationship in the best interests of the charity.

This will also look at how robust safeguards are to ensure the company and charity are separate and that it is clear to the public that they are two different organisations.

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