POLICE and the Charities Commission have confirmed they have launched an official investigation into a high-profile Darlington charity which collapsed amid financial problems earlier this year.

The Dial-a-Ride charity - which provided a taxi service for the elderly and disabled in the town - folded in February after suffering serious money difficulties.

Officials at the charity claimed the problems were caused by spiralling fuel and insurance costs, as well as a reduction in donations from £13,000 in 2000 to only £4,000 in 2001.

Earlier this year, the charity asked Darlington Borough Council for help and the authority's auditors checked its accounts.

Following their examination, they recommended the accounts be investigated by the Charities Commission.

Last night, the comission confirmed an official investigation had been launched.

A spokeswoman said: "We are working with both the police and the local authority."

Many vulnerable people relied on the charity for every-day tasks such as shopping and visiting the doctors, and there were concerns that when it closed some people would become housebound.

However, just weeks after the charity shut down, a new, unconnected service called Ring-a-Ride took over.

Ring-a-Ride is funded by the council and run by Darlington and District Youth and Community Association.

Last night, Dial-a-Ride's former chairman, Councillor Roderick Burtt, said board members would co-operate with the investigation.

"We want the investigation to be thorough, so that everybody is aware of what happened in the lead up to Dial-a-Ride closing," he said.

"The members of my board will all co-operate fully with the investigation and they are concerned that the investigation gets to the bottom of what happened, so no blame is attached to anyone."

A Durham Police spokeswoman said officers were looking into the charity's activities.