A charity with premises in Glasgow has had its assets frozen and its trustees are being investigated for alleged mismanagement.

Scotia Aid Sierra Leone, which had a turnover of more than £1million, claims to help children in the war-torn African country gain an education and the means to support themselves.

But it has been accused of spending only 17p of every pound raised on charitable causes, while bosses allegedly pocketed “consultancy” fees reportedly totalling around £313,000.

The Office of the Scottish Charity Regulator (OSCR) has announced it is looking into claims that the charity had wrongly claimed charitable rates relief on properties left empty.

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This meant the companies who used them saved huge sums in business rates.

The companies involved then allegedly donated sums to the charity in return.

Councils affected by the loss of rates involved in the dubious fund-raising technique are thought to have included Glasgow, South Lanarkshire and Fife, as well as a number in England.

It is believed Scotia Aid had claimed rates relief on a number of properties in Glasgow at various times since 2011.

Following an investigation, Glasgow City Council has taken action to stop that relief.

A Glasgow City Council spokesman said: “Following an investigation in 2015, business rates relief was withdrawn from a number of properties in Glasgow."

Scotia Aid, founded in 2010, has now had its bank account frozen, its two trustees have been suspended from controlling the charity and an interdict has been granted preventing it from selling, leasing or otherwise disposing of any of its property.

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The Court of Session granted the measures last Friday and also approved the appointment of an Interim Judicial Factor to manage the charity’s affairs.

OSCR’s head of enforcement Laura Anderson said that action was necessary to protect the charity’s assets and reinforce public confidence.

She said an investigation had been launched after the regulator was contacted by a number of councils in Scotland and England.

Councils offer a mandatory 80 per cent discount on business rates for properties used wholly or mainly for charitable purposes and some grant the remaining 20 per cent as a discretionary discount.

Scotia Aid would claim the property was being used to store furniture and other aid prior to shipping to Africa.

City Building, an arm's-length council company, was also associated with Scotia Aid Sierra Leone.

The Evening Times told in 2012 how the company donated the old sanitaryware from St Joseph's, Kelburn and Thornwood primaries when it was refurbishing the schools.

Hamilton Academical FC also had ties to the charity.

Club spokesman said: “The Club made the decision to sever ties with Scotia Aid due to negative allegations coming to light and the charity not fulfilling their financial obligations to us.

"We are in the process of removing their brand from our commercial portfolio.”

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A spokesman for Police Scotland said: "There is currently no active investigation into this charity, however if a complaint of alleged criminality is reported to us it will be investigated in the normal way."

A spokesman for City Building said: “City Building is approached on a regular basis by a wide range of community and charitable organisations seeking our support. We treat all such approaches in good faith.”