A MILITARY charity formerly linked with a West Somerset pub and restaurant is being wound up while an investigation for possible financial mismanagement or misconduct continues.

The Charity Commission froze the charity Afghan Heroes' bank accounts and launched an inquiry in December.

That investigation is continuing but an interim manager has now declared the charity is "no longer a viable concern" and has told supporters it will be wound up.

Last year, the Smugglers Inn in Blue Anchor was briefly rebranded as the Smuggled Retreat and was due to become the second in a planned network of premises launched by the charity.

It would have offered accommodation and support to former servicemen and women to rebuild their lives.

But several months later, Smugglers owner and landlord Simon Curtis told the Free Press the scheme had not got off the ground due to a restrictive covenant on the building which meant only the family of the operators of the business could live there.

The Smugglers cut all ties with Afghan Heroes last October, readopted its former identity and has continued to trade successfully as a pub and a restaurant since then.

Afghan Heroes was set up by Denise Harris of Shepton Mallet after her son lost his life serving in Afghanistan in 2009.

Its patron, MP Liam Fox resigned last year, citing a breakdown in trust after the charity's failure to make him aware of the investigation.

The charity's interim manager Brian Johnson, who was appointed by the Charity Commission, said he was "reviewing past and present operations" by the charity following a "number of complaints".

In a letter to former volunteers, he said he was "in the process of winding down the operations of the charity" and that "no further action should take place in terms of events or other fundraising or support activities".

During the financial year ending on December 31, 2012, the charity received £548,440 in income and spent £516,288.

It spent £474,924 on generating funds in 2012 and £15,153 on charitable activities.

A further £26,211 was spent on governance costs.

During that period it employed eight full-time and 16 part-time members of staff at a cost of £190,479.

A report will be published following the conclusion of the inquiry.

In a statement in December, Mr Harris said she was fully co-operating with the investigation and said she had tried to act properly and within the regulations at all times.

Since it launched in 2009, Afghan Heroes provided money to build memorials, organised holidays for families of wounded soldiers, and set up two retreats, the first being in Ashcott near Street.