MPs have condemned the government’s “slapdash and unimaginative approach” to appointing a new chairman of the Charity Commission after rejecting ministers’ pick for the job.

Orlando Fraser was put forward for the role after the Department for Digital, Culture, Media and Sport’s previous preferred candidate, Martin Thomas, pulled out of the process following the discovery that he had faced four allegations of inappropriate behaviour in a previous position.

However, the Commons committee overseeing the department’s work has now taken the unusual step of rejecting Mr Fraser’s appointment and accused it of failing to learn lessons from Mr Thomas’s withdrawal.

Committee chairman Julian Knight said: “The fiasco of four months ago should have jolted the department into widening out its search for the very best person to oversee an organisation that is so vital in ensuring people can support charities with confidence.

“By failing to rerun the process and falling back on a shortlist which would seem to be so lacking in diversity, ministers have sadly squandered their second chance.

“While we recognise Mr Fraser’s potential to do the job, such a slapdash and unimaginative approach to his recruitment means we cannot formally endorse his appointment.”

Mr Fraser was a Tory candidate at the 2005 general election and later acted as an adviser to the party on voluntary-sector issues.