Sick Kids funds drive left in tatters by fraud probe

THE relaunch of a £15 million appeal for the new Sick Kids hospital has been thrown into chaos by the news of a police investigation.

• Plans for the new Sick Kids are up in the air after we revealed the fraud probe in yesterday's News

The Evening News revealed yesterday how Lothian and Borders' fraud unit was probing the failed New Pyjamas campaign and its former director Elaine McGonigle, who was suspended then made redundant last year.

The Sick Kids Friends Foundation - which was responsible for New Pyjamas - wanted to set up a new version with NHS Lothian after it was formally scrapped, but a planned employment tribunal between Ms McGonigle and SKFF prevented that.

Now that police are involved, the date of the tribunal - which was due to begin next week - has been pushed back to May at the earliest, further delaying any flagship fundraising drive.

In fact, sources have suggested that delays may result in the tribunal not beginning until much later in the year.

That has severely hit the prospects of anything like the desired 15m - which was supposed to make the new facility at Little France "truly world-class" - being generated.

Lothians MSP Ian McKee, who is a former city GP, said: "This is a highly unsatisfactory situation, and unfortunately any delays in relaunching the campaign can only be negative. I just hope the public doesn't let mud stick. SKFF has been raising money for many years and I want to urge people to continue supporting it."

Police confirmed yesterday they had received a complaint from the SKFF about Perthshire-based Ms McGonigle - who was appeal director for 18 months prior to suspension.There is no indication as to how long the inquiry will last, but as long as it does, no tribunal can begin. Until that is concluded, no new appeal can be launched.

One saving grace for the SKFF is that the Sick Kids' opening date has moved from the beginning of 2013 to the middle of 2015, giving any campaign much more time to generate funds.

It is still not clear who will hold the balance of power in the new campaign, with the SKFF keen to retain its independence, but health chiefs desperate to avoid a repeat of the New Pyjamas chaos.

The appeal, which had the support of celebrities and politicians, made only 80,000, despite spending 500,000.