The international relief and development organisation was set up in 1991 and in 2016 reported an income of £36m. Its objects relate to the prevention or relief of poverty anywhere in the world through activities including providing grants, education, healthcare and medical aid to those in need.

The charity submitted a serious incident report, in accordance with best practice, to the Commission in December 2017. Since then, the Commission has met with the trustees on a number of occasions and has been provided with independent reports commissioned by the charity.

The regulator says these raise serious concerns about the administration of the charity, including failures to account for the charity’s funds and operate within the charity’s policies and procedures.

Its inquiry will look at whether or not the trustees have complied with and fulfilled their duties and responsibilities as trustees under charity law and the trustees’ management of relationships and work with other individuals, including donors and organisations and their due diligence leading up to and during such relationships.

The Commission will also assess the systems and processes in place to ensure that the trustees are informed of matters at the charity and their decision-making, and the financial controls and management of the charity’s funds and accounting procedures.

In a statement published on its website earlier this month, Human Appeal said it had reported a series of allegations concerning financial and governance issues to the Charity Commission.

The statement said: ‘Human Appeal’s trustees immediately suspended the CEO and appointed a leading specialist auditor to conduct an investigation.

‘The auditor has now completed an extensive report and, on the basis of the evidence presented, we have dismissed the CEO, subject to his right of appeal, and are now implementing the changes in internal processes that were recommended by the independent auditor, to ensure that this never happens again.

‘Human Appeal remain absolutely determined to resolve all highlighted issues and are currently working with the Charity Commission to clarify some specific points that they have raised.’

The Commission stressed that opening an inquiry is not in itself a finding of wrongdoing. Its purpose is to examine issues in detail, so that the regulator can ascertain whether there has been mismanagement and/or misconduct. At its conclusion, the Commission will publish a report detailing its findings and outcomes.

Report by Pat Sweet