Sick Kids fundraiser at centre of probe as New Pyjamas banks just £60,000

Published on Tuesday 2 February 2010 09:02

THE £15 million campaign to help give Edinburgh the world's best children's hospital was in disarray today.

The Evening News can reveal that a series of serious concerns have been raised about the New Pyjamas Campaign, which has received high-profile backing across Scotland.

As of today:

&149 The director Elaine McGonigle has been suspended;

&149 The chairman of the Sick Kids Friends Foundation – which runs New Pyjamas – Graeme Millar has resigned;

&149 It is claimed 500,000 has been spent on the campaign but only 60,000 brought in;

&149 Questions have been raised by trustees over the way the appeal is being run;

&#149 Both NHS Lothian and the SKFF have launched an urgent investigation into the matter.

Mr Millar is the chairman of recruitment firm Fletcher Jones which, it is understood, helped hire Ms McGonigle in the first place. In addition, the campaign is using Fletcher Jones offices as a headquarters base on Castle Terrace.

The Evening News also understands Ms McGonigle's son has been working at the foundation as a fundraising and events co-ordinator. Up to ten staff are thought to be employed overall by the campaign.

Ms McGonigle is said to have been suspended after trustees raised a series of issues about the way the campaign was being run. It is understood that she has in turn raised a grievance complaint against the Foundation.

A source close to the campaign said: "It looks like a complete mess and a lot of questions have not been answered."

But a source close to Ms McGonigle said it was she who raised concerns about the campaign - and that it was she and Mr Millar who chose to stand down.

Lothians MSP George Foulkes, one of the highest-profile supporters of the campaign – who has posed beside Jack McConnell in his pyjamas as appeal "ambassadors" for publicity events – said he was aware of concerns about the way the appeal has been run and had discussed it with NHS Lothian.

The Labour MSP said: "I have had a series of discussions with them and as a result I have made it clear that I think the time is right for fundraising to come under the general umbrella of the health board, as it is at Great Ormond Street and other children's hospitals.

"I am worried that this might create problems for the Sick Kids hospital and the development of plans for the future. It is very important that nothing of this is seen to be the fault of the Sick Kids or the board as they have acted as soon as it has come to their attention."

Despite spending half a million pounds, sources said just 60,000 had reached the charity's account.

Other insiders said they were dismayed at being told costs would be "covered" on other issues. Sources close to Ms McGonigle said she disputed the 500,000 figure.

Eyebrows were also raised after a lavish ball to formally launch the campaign at Dundas Castle.

Launched in 2008, the campaign's aim was to raise 15m for the new hospital at Little France, due to move ther in 2013 from its location at Sciennes.

The money raised would pay for top-class equipment and research facilities outwith standard NHS budgets.

Already the campaign – which has won widespread support from celebrities, politicians and health professionals – has announced it will be funding a new drop-in centre at the 150m hospital, and helping to provide a family hotel to allow parents to remain nearby as their child undergoes treatment.

And while the money banked remains low, the New Pyjamas Campaign did state that more than 4 million had been pledged towards the fundraising drive and only 350,000 had been spent.

One source said: "I was a bit concerned about the way money seemed to be no object in terms of expenditure."

NHS Lothian chairman Dr Charles Winstanley said: "When we were recently informed by the Sick Kids Friends Foundation about the level of funding raised by the New Pyjamas Campaignwe expressed our deep concern.

"We asked them to brief us as a matter of urgency on their plans to meet their fundraising commitment to the new hospital. We had already agreed to meet them on Wednesday to discuss this.

"NHS Lothian would be concerned at any suggestion public donations made in support of our new children's hospital may have been used for another purpose."

A spokesman for the Sick Kids Friends Foundation said: "The Sick Kids Friends Foundation has begun an urgent review of key aspects of the fundraising campaign for the new hospital following concerns that current income levels do not meet agreed targets. The Foundation is committed to taking action to deliver a successful fundraising campaign that will benefit children throughout Scotland. We are working closely with NHS Lothian in moving forward."

Mr Millar today said the appointment of Ms McGonigle was done properly, and that she was "a first class fundraiser".

He said he had taken the decision to stand down after lengthy service with the charity and that it had nothing to do with these allegations.

He added: "Perhaps NHS Lothian and the trustees feel under pressure to get this 15m. I still think they will get it, but this is disappointing."