Dossier reveals Sick Kids New Pyjamas dramas

Published on Thursday 25 February 2010 08:43

THE suspended director of the crisis-hit appeal to raise millions for the new Sick Kids hospital faced questions over "personal" claims on the campaign's credit card, it emerged today.

Documents obtained under freedom of information laws also reveal campaign chief Elaine McGonigle was paid 70,000 a year and was in line for a 50,000 bonus if the appeal was successful. Her staff stood to land 10,000 each.

The Evening News broke the news that Ms McGonigle had been suspended and campaign chairman Graeme Millar had stood down as a probe was launched into claims the 15 million New Pyjamas appeal had spent 500,000 and raised just 60,000.

Today we can reveal:

&#149 Auditors found Ms McGonigle used the campaign credit card on three occasions for "personal expenses" or items which had a "personal benefit".

&#149 The campaign credit card was used for cash advances totalling more than 4,000.

&#149 Three companies with links to members of the New Pyjamas appeal committee were paid to carry out work on behalf of the campaign.

&#149 The appeal predicted income of 6.5m for 2009-10 when just 25,000 had been raised by September.

&#149 Concerns over the appeal from NHS chiefs were first raised more than a year ago.

The Evening News has obtained hundreds of letters and e-mails between senior figures within NHS Lothian, the Sick Kids Friends Foundation – which ran the appeal – and Ms McGonigle herself over a 14-month period.

It reveals how relations completely broke down last year and how the SKFF launched its own audit into the New Pyjamas Appeal in November.

The audit, carried out by Henderson Loggie, highlights that, with 25,000 banked, it was "highly unlikely" ambitious fundraising targets would be met and recommended income budgets were "scrutinised in detail".

The auditors also investigated 25 expenses claims and concluded that reviewing procedures needed "strengthening". It noted that Ms McGonigle – who was allowed an expenditure limit of 10,000 – had received a number of personal expenses on the organisation credit card "in error".

It also highlighted claims for using the Castle Terrace NCP car park, just yards from the appeal HQ, which it said could be considered a "personal expense".

"The cost of car parking forms a large amount of the expense claims for the director," it said.

As previously revealed by the Evening News, the audit report states that Ms McGonigle's son, Richard, was employed as an intern at the campaign last summer, though it is still unclear exactly how much he was paid.

The report also sets out three payments which were made to firms linked to chairman Mr Millar and committee member Gordon White, whose relation Marion White is also on the committee.

New Pyjamas hired the offices of Fletcher Jones recruitment firm, where Mr Millar is chairman. A total of 8,245 was paid to the firm. Mr White is linked to Design Matters Ltd and Podcastmatters Ltd which received 4,000 and 14,000 respectively.

Further, the auditors found an assistant director to Ms McGonigle was paid off in August last year after the role was made redundant. The pay-off was three months' wages, or 11,250.

The audit also shows that seven staff were in line for huge bonuses if the appeal met its 15m target. Ms McGonigle would herself receive 50,000, with six others set to pocket 10,000.

The audit report led to disciplinary action being taken against Ms McGonigle which ultimately led to her suspension. In turn, Ms McGonigle lodged a grievance against the SKFF.

Among the e-mails obtained by the News is an invitation to a disciplinary hearing to Ms McGonigle from SKFF trustee David Reith.

He told her: "As a result of a number of major concerns, the trustees have carried out an investigation into the management of the campaign.

"These concerns, which have reached a critical point, will not come as any surprise as they have been regularly raised with you.

"They relate principally to your conduct in your role but also your performance in it."

These were denied by Ms McGonigle, who for her part had raised her own concerns about NHS Lothian and the SKFF much earlier in 2009.

She told SKFF council members: "It is my belief that this disciplinary action has been raised against me as a form of punishment and censure.

"My line manager (Mr Millar] in his role as the chair of the campaign has, without exception over the period since my appointment, noted his significant and notable satisfaction with my performance . . . and has fully authorised and been supportive of all actions and activities I have undertaken in my role."

Ms McGonigle and the SKFF are still in dispute and are yet to resolve her position, preventing the campaign being relaunched.

This is despite NHS Lothian chiefs talking about their concerns as far back as last February.

In one e-mail from NHS Lothian chairman Dr Charles Winstanley to the SKFF on 16 April last year, he said: "As had already been indicated, my board is very concerned about the New Pyjamas fundraising campaign. This concern includes both the strategic direction and campaign content, but particularly relates to the behaviours of your campaign director (Ms McGonigle].

"The campaign management team has given us no information on their fundraising progress. Nor has there been adherence to the agreed arrangement for the development of communications. Indeed, the director of the campaign has suggested that we have no formal entitlement to such information or co-operation and said so at a recent meeting in terms that my colleagues found quite unacceptable."

From April 2009 onwards, the concerns persisted.

NHS Lothian's director of strategic planning, Jackie Sansbury, described New Pyjamas' short-term fundraising goals as "not deliverable" and expressed concern at Ms McGonigle's reliance on "west coast" contacts.

Chief executive James Barbour said he was worried that NHS Lothian and the Sick Kids hospital would be "hurt" by a failed fundraising campaign.

The hundreds of e-mails also show concerns over Ms McGonigle's failure to attend meetings.

Other observations from Ms Sansbury concluded that the SKFF and New Pyjamas were "working against each other" and there were obvious "difficulties with personalities". At this stage the SKFF had already referred to Ms McGonigle in correspondence as "naive" and "unrealistic".

Ms McGonigle, who this week strongly refuted any allegations of wrongdoing or failures, could not be contacted for comment.

STAFF'S 'DREAD' OVER DETAILS BEING MADE PUBLIC

THE documents revealed today also showed charity staff's fear of the details of the crisis-hit appeal becoming public.

The Evening News revealed on 2 February how New Pyjamas director Ms McGonigle was suspended and chairman Graeme Millar stepped down over concerns about the lack of money coming into the 15 million appeal.

And in e-mails to Sick Kids Friends Foundation (SKFF) trustees the charity's chief executive, Maureen Harrison, revealed her "dread" at the wrangle going public.

In private e-mails senior trustee David Reith also warned NHS Lothian that he would take "appropriate action" if he found the health board was leaking details of the chaos.

Senior NHS staff warned each other that the Evening News had "eye-watering detail" on the scandal in the lead-up to the story.

Ms Harrison told trustees: "As I went to the shop this afternoon to purchase the dreaded Evening News I was stopped by staff, parents and some of our young patient friends, all of whom are greatly saddened by what they are seeing in the press and all wanting to remind us of their support."

Mr Reith also warned fellow SKFF members not to talk to the press in an e-mail. "Our PR agents advise strongly against speaking to these people ," he said. "There have already been too many leaks."