A Northern Ireland charity is being investigated by police over financial irregularities.

A spokesman for the Police Service Northern Ireland (PSNI) confirmed that: “Police have interviewed a man in relation to this investigation. A file will be prepared for the Public Prosecution Service in due course.”

Seeds is based in Londonderry with the charitable aim of promoting integration of different cultures by bringing people together. It was founded in 2004 in response to the increase in immigration and on its website it claims to have supported more than 32 ethinic minority groups last year.

Initial reports elsewhere claimed that the charity's bank account had been frozen, however director Eddie Kerr told civilsociety.co.uk that "it is only one funder who has frozen a grant until the investigation is over which hopefully will be soon". He refused to go into further detail.

Frances McCandless, chief executive of the Charity Commission Northern Ireland (CCNI) said: “The Charity Commission does not publicly comment on investigations. This is because the Commission is an effective and fair regulator of Northern Ireland charities and as such, would not wish to prejudice a current or future charity investigation.”

But, she added: “If a charity becomes the subject of a PSNI investigation, the Commission will watch the situation very closely and intervene using the full remit of our powers if necessary.”

The CCNI gained powers to investigate charities last year and last month the Department for Social Development announced that the Commission should be able to be able to start registering charities later this summer once an amendment to the Charities Act 2008 is passed.