The Charity Commission has opened a statutory inquiry into a Jewish charity because of concerns about its financial management, including undisclosed payments that appear to be to related parties.

Zlotchiv, a Hackney-based charity that awards grants for the advancement of the Jewish faith, education and for the relief of need, was already subject to a compliance case due to irregularities in its financial management.

But the regulator escalated its case to a statutory inquiry on 6 January, saying that the charity’s trustees had “failed to meaningfully engage and cooperate with the commission about regulatory concerns”. 

The commission said it had concerns about irregularities in Zlotchiv’s financial management, including a series of bounced cheques from the charity’s bank account. 

It also had concerns about payments from its account, which the regulator said “appear to be related-party payments” that were not disclosed by the charity in its annual returns.

The inquiry will examine whether the charity’s trustees are complying with their legal duties in respect of the administration, governance and management of the charity.

It will particularly look at trustee compliance in relation to the charity’s financial management, including the charity’s viability, the extent of any related-party transactions and unauthorised trustee benefit.

The regulator will also examine the trustees’ compliance with the charity’s governing document and the extent to which any failings or weaknesses identified in the administration of the charity are a result of misconduct or mismanagement by the trustees.

Zlotchiv has been contacted for comment.