Woman arrested over alleged Sick Kids fundraising fraud

A 47-year-old woman involved in fundraising for a children's hospital has been arrested in connection with alleged "fraudulent activity", police said today.

The alleged fraud is understood to have taken place while funds were being raised for the Royal Hospital for Sick Children in Edinburgh.

The woman, understood to be the former director of the new Pyjamas campaign Elaine McGonigle, is due to appear at Edinburgh Sheriff Court on August 3.

The New Pyjamas Campaign was set up to raise 15 million for a new Royal Hospital for Sick Children at Little France in Edinburgh, but fell into disarray last year amid concerns over spending.

The Sick Kids Friends Foundation (SKFF), which set up the campaign as a parallel fundraising body, launched a review in February last year following concerns that income levels did not meet agreed targets.

A further investigation was launched into the conduct of staff, and the foundation reported its findings to the police.

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

A SKFF spokesman said: "We have co-operated fully with Lothian and Borders Police's investigation. It would be inappropriate for us to comment further at this stage."

A spokeswoman for NHS Lothian said it was not appropriate for the health board to comment on today's arrest.