Watchdogs clear trustees of £15m Sick Kids charity

THE charity behind a campaign to raise £15 million for the new Edinburgh Royal Hospital for Sick Children has been cleared of any misconduct.

An investigation was launched in February into the management of the New Pyjamas campaign, set up to equip the new hospital at Little France, after it emerged it had raised only 60,000 but spent about 500,000.

Elaine McGonigle, the campaign's 70,000-a-year director, was suspended and later made redundant last year, and its chairman, Graeme Millar, resigned.

The high-profile campaign, launched in September 2008, had enjoyed backing from supporters such as former first minister Jack McConnell and George Foulkes. It was closed down in March 2008 and its ten staff members made redundant.

Yesterday the Office of the Scottish Charity Regulator (OSCR) said it had found no evidence that the trustees of the Sick Kids Friends Foundation had failed in their responsibilities.

However, Scotland's charity watchdog recommended that the trustees should review the constitution to provide clarity regarding authority and decision making saying "robust and clear lines of authority" should be put in place with regard to the fundraising campaign "so that all trustees and staff understand these from the outset".

The report stated: "In February 2010, OSCR became aware of intense media coverage about the New Pyjamas campaign. Reports suggested that charitable funds in the region of 500,000 had been expended with a return of only 60,000. OSCR received a complaint making several allegations about the campaign and the charity, and a claim that the charity's trustees had been made aware of concerns and had failed to take action.

"OSCR has found no evidence of misconduct on the part of the charity's trustees, who satisfied their responsibilities under charity law.

"However, the inquiry did highlight areas where the charity's governance could be strengthened. Several recommendations have already been addressed or are under consideration by the charity's trustees, who have co-operated openly throughout the inquiry."

Laura Anderson, OSCR's head of inquiry and investigations, said: "We recognise there has been considerable interest in this case.

"We have conducted a full and thorough inquiry. It is therefore encouraging to see that steps are already being taken by the trustees to implement our recommendations."

Last night Mr Millar's wife said he did not want to comment on the outcome of the investigation.

Lothians MSP and former GP Dr Ian McKee said: "I'm very relieved about OSCR's findings.It would have been disastrous for the appeal if they had found otherwise and it would have cast a cloud over the whole fundraising project.

"The problem was that the campaign suddenly expanded to a huge level and once that happened the administration and governance procedures appeared to suffer.

"However, the main message I want to get across is that people should feel secure in donating money to the Sick Kids Friends Foundation."

A spokeswoman for NHS Lothian said: "This is entirely a matter for the Sick Kids Friends Foundation to address."