A CHARITY treasurer allegedly forged a letter of reassurance after an accountant raised concerns over its finances, a court was told.

Former Darlington councillor Charles Graham Smith is accused of replying to the accountant to address some of his concerns, but in the name of the chairwoman of the town's Dial-a-Ride charity, Rosemary Sandford.

Mr Smith, 56, was the treasurer of the now defunct charity, set up in 1988 to offer transport for the elderly and disabled in Darlington.

Durham Crown Court was told the letter was sent four days after the accountant, David Sanders, wrote to Mr Smith to highlight issues of concern in preparing his audit of the charity for the year ending September 1999.

Mr Sanders sent the letter to Mr Smith on April 10, 2000, the day before a meeting of the directors of Dial-a-Ride, raising questions about accounting procedures.

The alleged forged letter was sent back to Mr Sanders, dated April 14, claiming the committee was happy with Mr Smith's work and praising him for his efforts with the charity.

Martin Towers, prosecuting, said: "The Crown's case is that Mr Smith was responsible for making that forged letter and did it to try to induce the accountant not to carry out a closer examination of the charity's accounting procedures and records at that time, which the Crown would say were flawed and inadequate.

"The Crown would say that the forged letter was an attempt to prevent Mr Smith's failures from being exposed.

"The two-page reply makes out that it was dealing with the various questions raised by Mr Smith, and for good measure praises the merits of Mr Smith and his abilities.

"It also thanks him for all his work."

Dial-a-Ride ran into financial problems and ceased trading in February 2002.

Suspicions arose over Mr Smith's actions as treasurer, and two years later he was interviewed by detectives.

He claimed he did not write the letter of reply in Ms Sandford's name, and claimed it was drafted in the name of the company secretary, Jean Earl, following a discussion about Mr Sanders' concerns at the directors' meeting.

Mr Smith claimed the directors discussed the points raised by Mr Sanders and agreed the reply.

In evidence, Ms Sandford said she was unaware of Mr Sanders' initial letter, and when asked if it was her signature on the letter of reply, she said: "I never signed this letter."

Mr Smith, of Woodland Road, Darlington, denies charges of forgery and using a false instrument, relating to the letter sent to Mr Sanders.

The trial continues today.