TWO trustees of a Scottish aid charity have been barred for life after investigations found only 13 pence of every pound it raised was spent on charitable work.

Scotia Aid Sierra Leone, which claimed to help children in the war-torn West African country, had its assets frozen by the Office of the Scottish Charity Regulator (OSCR) last July, amid claims its premises were being used to enter into lucrative property deals.

Now the charity watchdog has secured an order at the Court of Session removing the charity’s two remaining trustees, Kieran Kelly, 34, and Alan Johnston , 59, from any role in its management and control. The ruling effectively bars them from running any charity for life.

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Scotia Aid, which was founded in 2010, is believed to have ceased operating.

But the regulator began investigations after a whistleblower raised concerns about the running of the charity, including claims its trio of trustees were living a luxury lifestyle, paying themselves huge “consultancy fees” at the charity’s expense, while engaging in dubious financial practices.

In July, the charity regulator said it had determined the Uddingston-based charity had sought charitable rates relief on properties it had leased that were left empty. These premises were then allegedly leased back to the firms in return for donations, saving the companies that originally owned them huge sums in business rate, and leaving local councils out of pocket.

Local authorities known to have been affected include Glasgow City Council, North Lanarkshire and Fife, as well as several in England.

In July OSCR froze the bank account of Scotia Aid Sierra Leone and suspended Kelly and Johnston from controlling it, while also blocking the charity from selling or leasing any property, citing serious concerns about its activities and financial management. A third trustee is reported to have quit his role before OSCR became involved and escaped sanction.

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In a report OSCR also said there were concerns around a contract between Scotia Aid Sierra Leone and the Italian charity FHM Italia Onlusm which was meant to have led to the building of a primary care hospital. The Italian charity transferred significant sums of money to Scotia Aid Sierra Leone, but the Scottish charity was unable to account adequately for the uses to which it had been put.

Significant payments had also been made to consultancy companies connected with one or more of the charity’s trustees and former trustees, OSCR said. “There were no written contracts in place between each company and the charity for the services provided by the consultancy companies. These payments appear to be excessive and have not been sufficiently explained,” the report said.

A spokesman for OSCR said a motion had granted by the Court of Session last month, removing Kieran Kelly and Alan Johnston, from any role in the management and control of the charity, and appointing a Permanent Judicial Factor.

“The order for removal has the effect of permanently disqualifying the individuals concerned from acting as charity trustees of any charity.” he said.

Martin Tyson, OSCR’s head of casework, added: “The Court of Session granting our motion will help ensure funds will be used more appropriately in future. Individuals who are a risk to a charity have been prevented from acting as trustees for any other charity.

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“Trustees should always act in the interests of the charity with reasonable care and diligence. As this announcement shows, where trustees fail to do this, we will use our powers and take appropriate action.”