AN INVESTIGATION has been launched into a dissolved charity behind a controversial mosque amid concerns it used fundraising money to buy a property.

Charities watchdog, the Charity Commission, has opened a statutory inquiry into dissolved charity the Khodam Al Mahdi Organisation and charitable funds supposedly raised in its name.

The group is behind the Al Muhassin Mosque, in Windmill Lane, Fulmer, home to controversial Shia Muslim Sheikh Yasser al-Habib. The mosque plays host to hundreds of his followers every week and is home to Islamic satellite television station Fadak TV which airs his broadcasts, said to stir up conflict between the Shia and Sunni Muslims.

The Kuwaiti preacher has reportedly delivered sermons on the TV station celebrating the death of one of Sunni Islam’s most revered figures. He was also investigated by Ofcom two years ago after he reportedly suggested one of the Propher Muhammad’s successors was gay.

The commission said in August last year it became aware a charitable company had been dissolved at Companies House, since 2012, but said the charity had not informed the regulator it no longer existed or updated its details on the register, as it was required to do.

Commission investigators then found cash had supposedly been raised in the name of the charity, after it had dissolved, and was used to but a property.

A statement from the regulator read: “Following correspondence with the individuals holding the property, the regulator became increasingly concerned about the basis on which the funds were raised and the protection of the charitable property.

“In addition, the commission has concerns regarding the management and financial reporting by the former charity trustees.” It opened the statutory inquiry on February 17. The investigation is examining the basis on which the funds were raised and is assessing whether former trustees of the dissolved charity and people holding the property have complied with charity law.

Officials will then publish a report after the inquiry detailing what issues were looked at, what actions were undertaken as part of the inquiry and the outcomes.