A CHARITY which announced on Monday that it was closing could be investigated by the police and the Charities Commission.

Dial-a-Ride, in Darlington, experienced financial difficulties last year because of spiralling fuel and insurance costs.

A reduction in donations from £13,000 in 2000 to just £4,000 last year was also blamed for its problems.

To try to save the taxi service, used by elderly and disabled people in Darlington, the charity contacted the borough council for help.

After the authority's auditors checked the charity's accounts, it recommended that the finances be investigated by the Charities Commission, and informed the police.

A spokesman for Darlington Borough Council confirmed: "The matter has been handed over to the police."

A spokesman for the Charities Commission said that it had been made aware of "issues of concern" and was awaiting further details.

Councillor Roderick Burtt, chairman of Dial-a-Ride, said yesterday he was unaware the police had been informed.

"If there had been even a suspicion of something not quite right, as far as the finances are concerned, we would certainly have contacted the police ourselves," he said.

The people who rely on the service provided by Dial-a-Ride to go shopping, attend doctors' appointments and social events, fear they will be left as virtual prisoners in their homes without its support.

Rita Fishwick, secretary of Darlington's Arthritis Care branch, expressed her shock at the news that the service was closing.

"I am absolutely appalled. We have about 40 members who rely heavily on this service," she said.

"Some of the members are quite severely disabled and this will mean a great deal of hardship for them, unless the council can make alternative arrangements."

Richard Hughes, from Ribble Court, Darlington, said he often used the Dial-a-Ride service, which provided transport for his sister, who is paraplegic.

He said: "It is very upsetting. There are a lot of people, like my sister, who rely on the service and who just can't do without it. They will be virtually housebound."

A council spokesman said talks were continuing to find an alternative voluntary sector provider for the service.