Charity chief faced bomb plot trial

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Dr Faisal Mostafa, who was named as the first point of contact at Stockport-based Green Crescent, was cleared in 2002 of planning to cause terrorist explosions in Britain using the high explosive HMTD.

Bangladeshi security forces suspect the orphanage, run by the charity, of being used as a training camp and arms factory for Islamic militants.

The Charity Commission, the independent regulator of charities in England and Wales, said it was "seriously concerned" after a weapons cache was allegedly found during the raid at the orphanage and attached Muslim school on the remote island of Bhola. A teacher and three caretakers were arrested.

Andrew Hind, chief executive of the commission, said: "We are working with relevant law enforcement and other agencies to investigate the allegation that terrorist activity is connected with the charity. The matter is of serious concern to us, and we are taking this action given the gravity of the matter, the public interest and the need to protect charity work and funds."

Officers were reportedly searching for Dr Mostafa, a chemistry graduate, who was listed as a trustee and first point of contact for the charity on the commission's website, which said Green Crescent received funds of more than £60,000 last year.

In 2002, Dr Mostafa, of Green Pastures, Stockport, was cleared by a jury after being accused of conspiring to build home-made explosive devices using a "terrorists' handbook" detailing bomb-making techniques. He faced a joint charge at Birmingham Crown Court of conspiracy to cause explosions with intent to endanger life and cause serious injury to property in the UK.

The incidents were alleged to have happened using a terrace house in Sparkhill, Birmingham, and an industrial unit in the Tyseley area of the city to stockpile bomb-making material.

The commission's inquiry will focus on determining the extent of links between the charity and the alleged activity.

It will also consider the financial and governance practices of the charity, particularly as regards its overseas activity, a spokesman said.