Oxfam staff today denied links with a charity allegedly being used as a fundraising front for Osama bin Laden, suspected organiser of the terrorist attacks on the USA.

The Charity Commission is investigating the accounts of the Saudi-based International Islamic Relief Organisation (IIRO) because it has been accused of supporting extremist groups linked to the terrorist thought to be behind the September 11 attacks.

On Friday, charity commissioners, who are trying to stop funds flowing to bin Laden, visited the office of Wenn Townsend in St Giles, Oxford, a firm of chartered accountants, which has been handling the charity's accounts.

Graham Cole, a partner at the firm, issued a statement which said: "The Charity Commissioners visited our offices on Friday to review the files of the IIRO (charity registered number 1051594).

"The charity has been financially dormant for five years and we understand that the commissioners are looking into removing the charity from their register on the grounds of inactivity."

The IIRO's department of external affairs said on its website that it had developed an "excellent working relationship" with a large number of "international humanitarian organisations" including Oxfam, whose HQ is in Summertown, and Oxford University's Refugee Studies Centre (RSC).

But Oxfam spokesman Helen Palmer said: "We have never had close links or any direct relationship with them.

"Our staff were present at a 1998 workshop attended by their representatives in Tanzania, but there is no funding link whatsover."

The RSC -- previously called the Refugee Study Program at Oxford -- conducts research into humanitarian assistance.

Nancy Kenny, development officer for the RSC, denied that direct links with the IIRO existed.

She said: "We only have links with other academic departments, not with relief organisations.

"The IIRO receives our journal, but that is our only contact with them.

"We certainly don't have 'excellent working links', but we can't control what they put on their website."

The IIRO, based in Jeddah, was unavailable for comment.