Rev Paul Flowers, the disgraced former Co-op bank chairman, quit his chairmanship with the charity Lifeline Project after being investigated over £150,000 of alleged false expenses, according to news reports today.

The Daily Telegraph has reported that Flowers was chair of Lifeline Project between 1992 and 2004, and that in these years he made a “significant number of alleged false claims”.

The charity launched an investigation into Flowers, but he quit his role before it reported its findings.

Ian Wardle, chief executive of the Lifeline Project, told the Telegraph that its investigation was passed on to the Charity Commission, but he though no action was taken. He also described the amount involved as a “significant sum”.

A Charity Commission spokeswoman said: “We can now confirm that the charity Lifeline Projects contacted the Commission in 2004 to inform us of concerns into expenses payments made to a former trustee. We are working to establish the details of the charity’s report to us and our regulatory response.”

Flowers is currently being investigated by police over claims he bought and used illegal drugs after weekend newspaper reports showed evidence of the Methodist minister buying hard drugs.

This week, he has stepped down from his position of trustee of Terrence Higgins Trust. Flowers had been a board member at Terrence Higgins Trust since 2011.

Rev Flowers has issued a statement through the Methodist Church, citing a tough year with a family death and work pressures. “At the lowest point in this terrible period, I did things that were stupid and wrong. I am sorry for this, and I am seeking professional help, and apologise to all I have hurt or failed by my actions."

The Methodist Church has suspended Flowers.

A Lifeline Project spokeswoman said: "Ian Wardle has explained that in 2004 he had whistle blown to Lifeline's solicitor regarding concerns that Ian held in connection with discrepancies in expense claims submitted to Lifeline over a prolonged period by the then Chair of Lifeline (Rev Paul
Flowers).

"These discrepancies had not been obvious and required a detailed investigation. Following legal advice from the outset from Lifeline's solicitor and further support from Queens Counsel, the investigation continued and a process was followed to attempt to identify with the involvement of Rev Flowers, which of the expenses were reasonably
incurred and which were not.

"The matter was fully reported to the Charity Commission. The figure in question of between £60-70,000 referenced in the press covered a period of 5 years, averaging
£15,000 per year.

"Rev Flowers resigned as Chair of the Trustees of Lifeline (a voluntary, unremunerated position that he held) before the process was completed.

"Lifeline staff at all levels are being put under significant strain regarding the continued press interest in this matter and while Lifeline governors have been and will continue to
communicate with all appropriate authorities, as required, we are extremely keen that we can allow our workforce to continue with the important work that they are doing in our
services to held our service users and other beneficiaries."