AS in many shops, staff at Alistir Wood Tait Antique and Fine Jewellery pick a different charity to support each year. They picked Moonbeams for 2003.

Now designs for Mr Moonbeam silver charms have been put on hold, and yesterday workers at the Edinburgh jewellers spoke of their shock that the charity's accounts had been frozen.

Naomi Hamilton, manager, said: ''We are stunned at these developments.''

She said the business chose to back the charity because its aims to help children suffering from cancer and their families seemed ''beyond reproach''.

''News that all may not be as it seems will be particularly upsetting for those families whose children are ill and are involved with Moonbeams,'' added Ms Hamilton.

''It is also distressing for anyone who has committed time or money to the cause to think there could be even the slightest possibility it has not been used as expected.''

The latest allegations surrounding the fundraising activities of a Scottish charity led to renewed calls last night for the speedy implementation of legislation to restore public confidence by regulating charities.

The suspension of five directors of Moonbeams Children's Cancer Charity, following allegations that only (pounds) 70,000 of almost (pounds) 3m raised over the past four years went to help victims and their families, comes only five months after The Herald exposed alleged irregularities in the fundraising activities of Breast Cancer Research (Scotland).

Last May, Solutions RMC, a company headed by Tony Freeman, allegedly passed on only (pounds) 1.5m of more than (pounds) 13m donated to Breast Research (Scotland). The company was said to have taken (pounds) 8m in commission before going into voluntary liquidation.

Last month, Margaret Curran, the communities minister, unveiled new powers to scrutinise Scotland's charities in an effort to enhance public confidence by radically overhauling fund-raising legislation.

She promised to intensify proposed powers for a new charities regulator with detailed legislative plans to be published next year.

The minister said an office of Scottish charities register being set up by the end of this year would later be made an independent statutory body, allowing it to grant charitable status and actively to monitor these groups.

Moonbeams was founded in Edinburgh in 1992 with the aim of helping children who suffer from cancer and their families.

It raised money mainly through collection boxes and the sale of brightly-coloured packaged sweets in shops and bars in Scotland and other parts of the UK. Its website states that the charity works closely with all children's hospitals throughout the UK and Northern Ireland, including the Royal Hospital for Sick Children in Edinburgh and Great Ormond Street in London.

According to the website, it has three holiday homes, including one in Kissimmee, Florida, for families to use.

The website listed a number of commercial donors and groups who it said ''helped to make wishes come true'' for the cancer sufferers.

Among those were HBOS and BT, which were credited with helping to raise more than (pounds) 70,000 for the charity.

Pupils from Leith Academy and Balerno High School in Edinburgh also raised more than (pounds) 3000.

Martin Sime, chief executive of the Scottish Council for Voluntary Organisations, said the public donated about (pounds) 300m each year to Scottish charities, much of which helped many vulnerable members of our communities.

Following the allegations against Moonbeams, he said: ''We need to move quickly to get a charity bill on to the statute book so that cases like this are caught quickly and public confidence in charities is maintained.''

Ryan Mackie, director in Scotland of Clic, the cancer and leukaemia in childhood charity, which offers respite for child cancer sufferers and their families throughout the UK, also expressed concern at the latest development.

Mr Mackie said: ''We depend on the generosity of the general public.

''We are hoping to raise more than (pounds) 7m this year to help fund our vital services.''

He added: ''I do hope another charity scandal will not impact on the confidence of donors and that they will continue to support children's cancer charities.''