The Charity Commission has appointed interim managers to a health charity amid concerns of mismanagement of the charity's funds.

Two new managers will oversee the Island Health Trust while the charity regulator examines some concerning activity at the charity, including the application of charitable funds and relevant decision making by the former trustees.

The charity's primary cause is to promote the provision of primary healthcare within the London boroughs of Tower Hamlets and Newham.

But the Charity Commission opened an inquiry into the charity in November 2017 after concerns were flagged in relation the expenditure of charitable funds on strategic development. A substantial part of this involved payments to a consultancy firm owned by the charity's previous chair.

The inquiry has since found that the issues under inquiry led to the direct loss of charitable funds and the options for recovery have not yet been sufficiently explored and considered.

In light of this, the regulator has exercised its legal powers to appoint Helen Briant and Lucy James of Trowers & Hamlins LLP as interim managers to the charity. They will independently examine and provide advice on potential claims against the former trustees.

The current trustees will continue to remain responsible for matters relating to the operation, management and administration of the charity.

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