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Charity faces watchdog investigation

20/11/2007

A west Manchester charity is to be scrutinised by a national watchdog after it was discovered that it had been funnelling money from a north-west newsagent and petrol station chain.

The Charity Commission is tasked with assessing whether or not the Great Lever Muslim Society in Bolton has capable trustees.

Aleef Garages' directors, who have now been jailed, siphoned off part of their income (£5 million) through the charity in order to avoid paying tax.

A five-year investigation by the customs and revenue department found that brothers Mustaq, Iqbal and Mubarakali Patel had used the undeclared income to fund lavish lifestyles.

Steve Armitt, who led investigation, said: "It was cheating on a grand scale. Those involved tried to make it as difficult as possible for the cheating to be discovered."

A spokesman for the Charities Commission said the watchdog would "look to ensure that the charity is administered properly going forward."

The brothers have been ordered to pay back £5 million of undeclared cash, as well as £500,000 in legal costs and are banned from being company directors for ten years.