The Ashley Foundation homeless charity probed over ex-CEO payments

A homeless foundation is being investigated over claims that it reimbursed its former chief executive's personal purchases of "luxury goods".

The Charity Commission said it is looking into items which "do not appear to be linked" to the day-to-day activities of the Blackpool-based Ashley Foundation.

The watchdog said opening an inquiry was "not a finding of wrongdoing".

The charity said it was co-operating fully with the investigation.

The foundation, founded in 1997, runs three hostels in the seaside town, as well as three in Blackburn and one in Sunderland.

Its founder Lee Dribben stepped down as chief executive officer in 2019.

The commission said it had launched the inquiry after being alerted to concerns about purchases of "luxury goods" on the former CEO's personal credit card, which were reimbursed by the charity.

"The purchases do not appear to be linked to day-to-day activities, and so investigators will probe whether the transactions were reasonable and in the charity's best interests," a statement said.

The watchdog said it would also be looking into claims that "charity properties were sold to a third party and then re-sold on the same day for a significantly higher value", adding the terms of a subsequent management agreement with a third party "raise potential concerns".

The inquiry would examine the charity's "financial management", any "potential financial loss" and its trustees' "decision-making", "compliance with legal duties" and management of conflicts of interest, the statement said.

The charity declined to make any further comment on the inquiry and said its "primary focus" remained providing accommodation and support for the homeless.