TWO Prestwich charity bosses have been disqualified after almost half a million pounds was loaned from the organisation to one of their businesses.

An investigation by the Charity Commission found that the decision to handover the sum from the Jewish Seminary for Girls (JSG) was an “act of misconduct and/or mismanagement”.

Concerns were also raised about the payment of two Rabbis employed by the charity to give lectures. one of which was related to a trustee and was given £2,500 per month.

Amy Spiller, head of the investigations team at the Charity Commission, said: “It’s clear that the former trustees of this charity did not act in the best interests of their charity or its beneficiaries. They were reckless with charitable funds and could have cost the charity its future via an ill-advised loan to someone they knew and payments to others without sufficient oversight.

“It’s therefore right that the trustees responsible have been disqualified.”

The JSG, based in Bury New Road, aims to promote the Jewish faith among Jewish girls and women aged 15 to 25, providing religious education and instruction to help students find work.

An inquiry into the JSG was opened by the Charity Commission in 2015 after concerns were raised about accounts it submitted, a report published this week revealed. At the time the charity was already under investigation for late submission of its accounts for the two previous years.

Analysis of the documentation showed a loan agreement between the JSG and a company run by former trustee Yonathan Kahn for £472,394. Assets for his company were valued at less than £6,000.

It was also found the decision to grant the loan was authorised by only one trustee, Avrohom Mordechai Royde.

After the loan was paid the JSG was left with only £816. The Charity Commission therefore described the payment as “not favourable to the charity”.

Moreover, the decision-making for the loan agreement was not adequately documented, the commission added.

No repayments were being made on the loan before the commission’s inquiry was opened ­- however, these are now being made monthly, the commission’s report said.

Now the commission has issued an order to the JSG’s current trustees to take legal advice in relation to calling in the loan and potential restitution.

Mr Kahn and Mr Royde have been disqualified as charity directors for 12 years.

The JSG, which now has a new board of trustees, was unavailable for comment.