A Charity Commission investigation into the scandal-hit organisation is on ice while legal proceedings take place

A probe into a scandal-hit charity is on hold – more than three years after it was launched.

Kids Company folded in 2015 following allegations of financial mismanagement and poor governance.

A statutory inquiry into the concerns was launched by the Charity Commission immediately after the charity closed, but the regulator confirmed this week that the process is on hold.

In July of 2017, the Insolvency Service announced it was bringing disqualification proceedings against the charity's eight former directors and Camila Batmanghelidjh, its founder and former chief executive.

The commission has confirmed that the insolvency investigation must take precedence.

A spokeswoman said: "We recognise the high public interest in this case and we have been and remain committed to progressing matters thoroughly but as swiftly as possible, without compromising due process and the outcome," she said.

"We have always made clear that the work of the Insolvency Service/Official Receiver takes precedence over the commission’s inquiry, and that our inquiry would take into account their findings.

"The inquiry is therefore currently on hold pending the progress of those legal proceedings.

"As soon as we are able to, without prejudicing any proceedings or outcome, we will provide an update on our investigative work."

The Insolvency Service has said that a hearing date will be set as the case proceeds as normal. The directors of Kids Company have said they will “robustly defend” themselves against the proceedings.