The Charity Commission has restricted any transactions made over £4,000 by a Christian charity embroiled in a financial and conflict of interest scandal.

The spending curb has been put in place for Barnabas Fund as the regulator announces it has escalated its regulatory compliance probe into its finances and management to a statutory inquiry.

Being looked at are allegations of unauthorised payments to current and former trustees and that the founders have “inappropriate control and influence” over its management.

“Possible unmanaged” conflicts of interest at the charity, which is known as Barnabas Aid, will also be looked at.

The charity’s relationship with Nexcus, a US-based subsidiary is another issue being investigated. The regulator wants to see if the charity’s structure and relationship with Nexcus “is in the best interests of the charity”.

Concerns that funds “may have been misused in the past” as well as questions over trustees’ oversight has prompted the Commission to restrict its spending.

This is to protect the charity’s “significant income and assets”.

According to its latest filed accounts for the financial year ending 1 August 2022, it has an income of over £21m and assets of more than £2.3m.

It is currently around three months late in filing its accounts for the year ending August 2023.

“The investigation will also check if spending is correctly recorded, examine relationships with other organisations, and explore the influence of non-leaders on decision-making,” added the regulator.

It has been reported by the Telegraph that there is a possible £15m “hole" in the finances of the charity’s global network, amid concerns over money given to its leaders.

---