Seventy-five-year-old group suddenly closed last month

Scotland’s charity watchdog has launched a probe into a north-east charity that suddenly closed leaving staff out of pocket.

Mental Health Aberdeen (MHA), which provided various services including counselling, services in schools and community projects, closed last month, ending a 75-year history in the city.

Now the Office of the Scottish Charity Regulator (OSCR) has opened an investigation after receiving concerns from members of the public regarding allegations of “inappropriate expenditure.”

Bosses said it faced unique circumstances that were “complex”, many of which were money related.

Funding has been reduced or withdrawn and combined with the recent National Insurance hike, managers said it was impossible to continue.

A spokesperson for OSCR said: “We have received a number of concerns from the public about the closure of Mental Health Aberdeen (SC012306), which included allegations of inappropriate expenditure by the organisation.

“These concerns are currently being assessed in line with our standard policies and procedures.”

Last month the charity said that despite the tireless efforts to meet rising demand, its current income could no longer sustain the level of service it aimed to provide.

A spokesperson said: "Like many third sector organisations across the country, we are facing the stark reality of being asked to do more with less - a position that is no longer viable."

They added: "It is vital that charities, like ours, are given the tools and resources to continue delivering essential services to those who need them most, before it's too late."

Former employee Alan Paterson, who worked as a counsellor at MHA for five years, said staff were sent an email by management in which they were told there would be an emergency meeting the following day.

"At the meeting, staff were told of redundancies, and that the liquidator was being called in," he said.

"It was brutal. People were in tears at the meeting, people were holding each other with the sense of loss.

"For all of us, it was just utter shock and trauma."

He said he was still waiting for his last month of pay.

MHA’s last accounts, for year ending 2023, show an income of £1,627,321 against an expenditure of £1,463,553.

Its latest accounts remain overdue by seven months and 15 days.