An Islamic charity has opted to dissolve itself following a Charity Commission investigation into its poor management and unaccounted-for income.

The Essex Islamic Trust was dissolved late last year following a year-long investigation into mismanagement and misuse of funds by the Charity Commission, an inquiry report released last week revealed.

The trustees of the charity, all of whom belonged to the same family, were not able to account for large cash withdrawals made from the small charity’s bank accounts, and questions were raised by the Commission about a £9,400 cash withdrawal made during Ramadan, immediately after the exact amount had been put into the account.

The chair, whose wife and daughter also sat on the charity board, was found to be living in a property for which the trust had raised money to buy as a mosque. He told investigators that the capital appeal had failed and so he bought the property privately. He then leased the property back to the charity for £235 a week, although the board was found to have made no effort to find out if this was the market price for the property. Rent was paid in cash.

The Charity Commission condemned the behaviour of the board, which was found to be not independent due to the fact that all trustees were related and to have been involved in self-dealing.

The Essex Islamic Trust board decided to dissolve the charity last November before the release of the Commission’s findings last Friday.