The Charity Commission, the independent regulator of charities in England and Wales, has opened a statutory inquiry into The Reb Moishe Foundation. The charity is based in North London.

The commission had been engaging with the charity as part of an operational compliance case since December 2014, when HMRC raised concerns about a £2 million loan facility made in 2006 by the charity to a company, which the charity’s current sole trustee is now a director. The charity’s accounts for December 2013 show £2,326,401 is owed to the charity by the company.

The commission’s compliance case uncovered other concerns in connection with the loan, including that the company to which the loan was made is reportedly running at a significant deficit and that the interest payable to the charity on the loan has also been reduced. The commission is also concerned about an apparent lack of charitable expenditure, contradictory information provided in the charity’s accounts, and the fact that the trustee board is currently inquorate.

The inquiry was opened on 1 May 2015; the commission has been unable to make the inquiry public until now, due to the involvement of another agency.