The Charity Commission has restricted the spending of the international aid charity Barnabas Fund amid concerns of unauthorised payments to trustees and inappropriate control by its founders. 

The regulator last month said it had opened a statutory inquiry into the charity, after an independent investigation revealed “inexplicable” transactions involving its founder and other senior figures.

Barnabas Aid International, also known as the Barnabas Fund, aims to support Christian communities, churches and individuals around the world. It has offices in the UK, US, Australia, New Zealand and Malaysia.

The regulator began assessing concerns at the charity after its founder and three key senior figures were sacked earlier this year as a result of claims of “serious financial impropriety” and a toxic work culture. 

Patrick Sookhdeo, founder and international director; Caroline Kerslake, international director of projects; Prasad Phillips, deputy international director; and Noel Frost, former chief executive, were suspended in April as a result of the whistleblowing allegations.

The Barnabas Aid UK board has also been in dispute with its US-based counterpart over the appointment of Colin Bloom as chief executive of Barnabas Aid International. 

The commission said today it was investigating issues including “allegations of unauthorised payments to some of the current and former trustees and related parties, allegations that the charity’s founders have inappropriate control or influence over how the charity operates, and possible unmanaged conflicts of interest”. 

It also said it wanted to establish whether the charity’s structure and relationship with Nexcus, a US-based subsidiary, was in the best interests of the charity. 

“Due to concerns that the charity’s funds may have been misused in the past, and questions as to the trustees’ oversight, the commission has used its powers to temporarily restrict any transactions the charity intends to make which are over £4,000,” the regulator said. 

“This is to protect the charity’s significant income and assets – Barnabas Fund reported an income of over £21m and assets of over £2.3m in its latest accounts.”

The commission said its inquiry would also examine whether spending had been correctly recorded, scrutinise its relationships with other organisations and “explore the influence of non-leaders on decision-making”. 

Barnabas Fund has been contacted for comment.