THE financial dealings of a charity set up to aid injured former Durham miners are being investigated.

The Charity Commission has placed Durham Mining Convalescent Homes Fund into the hands of a receiver until the inquiry is completed.

Day-to-day running will be carried out by Deborah Oram, of Birmingham solicitors Anthony Collins, who has been appointed receiver and manager of the fund.

The inquiry was launched as a result of a routine assessment of the fund's accounts, and a full report will be compiled when the investigation is concluded.

Registered as a charity in August 1994, the fund was set up to meet the cost of convalescent treatment for ex-pitmen in Durham, Northumberland and Tyne and Wear, 'promoting charitable social welfare activities, for the benefit of the mining community in those counties.'

Charity Commission operations director Simon Gillespie said: "The inquiry is looking into the possibility that there has been inappropriate expenditure and misapplication of charitable funds, both of which are matters we take very seriously.

"As a result of our monitoring process we felt there were some questions which needed to be addressed.

"We are concerned money hasn't been applied properly for charitable purposes for the miners of the area and former miners. We have a number of concerns with this charity.

"The independent receiver and manager will assess the charity's current and continuing operations, and report her findings to the commission."

The charity is registered in the name of North-East NUM official Dave Hopper, at the union's Redhills' headquarters in Durham.

In the financial year that ended in March 1999 the charity spent £151,514 on administration - including £114,537 on staff costs - but made grants of £23,918. A spokesman for the charity said there had been no wrongdoing.

He said the charity was originally set up to fund the convalescence of sick miners but with the death of the industry now focused on giving advice.

"They have been providing help such as representing people at medical tribunals and claims for industrial disease. That doesn't show as cash because it isn't cash.''

The charity had four paid staff but this was being reduced to one. Mr Hopper, who had been both trustee and administrator, had relinquished his paid role.

The spokesman said the trustees were co-operating with the inquiry and 'are absolutely determined that the charity remains a charity for the Durham mining communities and not for anybody else.'

He added: "We would argue that the charity is operating not only within the spirit of its charter but to the letter of it.''