Fraud probe into former Sick Kids charity director

Published on Thursday 13 January 2011 15:37

POLICE have launched a fraud investigation into the woman who ran the failed flagship appeal to raise £15 million for the Capital's new Sick Kids hospital.

INVESTIGATION: Appeal director Elaine McGonigle

The New Pyjamas campaign suffered a high-profile collapse last year after reportedly spending six times as much as it had made.

Elaine McGonigle, the appeal's director, was suspended then made redundant, with her employment tribunal against the Sick Kids Friends Foundation (SKFF) - which ran the campaign - supposed to begin next week.

However, the Evening News has learned that it has now been postponed for at least three months as Lothian and Borders Police investigate.

It is understood lawyers for the SKFF uncovered alleged discrepancies in the New Pyjamas accounts as they prepared to defend the employment tribunal case and contacted police.

The lawyer for Perthshire-based Ms McGonigle said she was yet to hear from officers and that she maintained her innocence.

A police spokesman said: "We can confirm that we have received a complaint regarding alleged fraudulent activity related to fundraising activity for the Royal Hospital for Sick Children, and an investigation is under way."

Towards the end of 2009, both NHS Lothian and bosses at the SKFF had major concerns about the New Pyjamas campaign, which was supposed to raise 15m to pay for equipment above and beyond what is provided in NHS budgets.

Among its pledges were a school at the new hospital when it opens at Little France in 2015, a family hotel and a massively upgraded drop-in centre.

But after a series of revelations came out about in-fighting, squandered cash and alleged incompetence, the wheels came off in spectacular fashion, having made a near 500,000 loss.

Ms McGonigle was made redundant, along with ten members of the New Pyjamas staff.

Ms McGonigle's camp maintained her innocence, instead blaming the SKFF for derailing the project, saying that it "takes money to make money", and that the 15m target would have been hit had SKFF bosses kept faith.

Her friends also put the row down to a personality clash, with health chiefs not taking to her brusque style, adding that she had received 2m of pledges for New Pyjamas, even though the well appeared dry.

A subsequent investigation by the Office of the Scottish Charity Regulator cleared the SKFF of any wrongdoing.

Robert Holland, Ms McGonigle's lawyer, said today: "She has had no contact whatsoever from Lothian and Borders Police since these allegations were made and absolutely denies any wrongdoing."

An SKFF spokesman said: "It would be inappropriate for us to comment at this point."