A FOUNDING member of a failed children's charity has admitted that mistakes were made in its running.

Baby Assist, at Stockton, Teesside, was set to up to raise funds for much needed hospital equipment for premature babies and those with defects - but failed to deliver a penny.

It attracted complaints from all over the country and was criticised by the Charity Commission for England and Wales, for misleading donors and carrying out street collections without permission.

Last night, Antony Richardson, who helped set up the charity in 1999, but quit last year, said: "While I was there, we did what we felt to be right but, with hindsight, mistakes may have been made."

Mr Richardson said he had left his role as a trustee with Baby Assist last June for "business reasons".

The charity is being voluntarily wound-up following an inquiry by the Charity Commission. It was unable to find evidence that any funds raised by its collectors had been applied to Baby Assist charitable objectives.

Surplus funds, after payment of collectors' commissions and other expenses, were either used to expand fundraising activities or retained in the charity's bank account.

Baby Assist said it had written to a number of hospitals inviting grant applications, but no interest had been shown.

The Charity Commission has asked that remaining money, about £3,500, be donated to the James Cook University Hospital, in Middlesbrough.

A Charity Commission spokeswoman said: "There is no suggestion that the trustees or anyone else benefited but, equally, there was no great effort to get a grants process going."

It would continue to monitor Baby Assist until remaining funds had been handed over and accounts submitted to the commission.