The Charity Commission announced yesterday that it found “no evidence” that a Bradford-based charity used illegal immigrants to collect funds.

Aid charity Bait Ul Mall was accused of using “vulnerable people” and illegal immigrants to collect funds. The Charity Commission also received complaints that funds were benefitting trustees instead of charitable purposes.

But a Commission investigation found no evidence of either accusation.

A report by the Charity Commission published yesterday said: “We found no evidence that funds had been used for the personal benefit of the trustees [and] … no evidence that the charity exploited vulnerable groups or used illegal immigrants to collect funds.”

But the investigation did raise questions about financial management of the charity.

“In at least one case, the trustees had failed to prepare and submit the necessary financial returns to the authority,” the report said.

The Commission also found that “money was passing through the bank accounts but not being reported in the charity’s annual accounts”.

“We were told that this was because trustees collected cash and held it at home,” it said.

According to the Commission, Bait Ul Mall’s annual accounts lacked detail for “the public or the regulator to get a sound understanding of the activities of the charity” but no evidence was found to suggest that funds were used for the personal benefit of trustees.

A relative of a trustee was formerly employed by the charity but the Commission said there was no evidence that it was an “inappropriate” employment.

The Commission confirmed that “it was clear from the records” that payments were being made to, and received by, a charitable school in Pakistan supported by the charity.

As a result of the investigation, the charity made amendments to its annual accounts to meet statutory requirements and ensure public transparency.

“The trustees have accepted that they need a more robust procedure for handling the cash collections, banking the money and passing funds to Pakistan and have amended the governing document so that the anomalies are removed and a clear framework for trustee benefits is in place,” the report said.

The charity will continue to be monitored to ensure that the improvements are maintained, it said.

Bait Ul Mall was registered with the Commission in 2010 with objectives to educate children, provide funding for a charitable school for orphans and relieve sickness in Pakistan.