AN MP has called for a wholesale review into how the charity sector is scrutinised after allegations were made about the running of a Rossendale foodbank.

An anonymous online blog post raised concerns about payments made by the Raft Foundation in Rawtenstall, to volunteer Caroline Collins, who was paid as a consultant and community organiser.

The foundation, which was set up in 2012, was forced to respond on Facebook and said after an investigation by police ‘no crimal offences were recognised’.

The blog post claims volunteer Caroline Collins had been paid £2,000-a-month for consultancy work and was also paid as a community organiser.

Ms Collins told the Lancashire Telegraph that she had been paid, but the money had not come from donations.

The blog post called on Ms Collins and her partner Mark Stapleton, who is chairman of the foundation, to resign.

It said: “Some charities and community groups do employ people to do certain tasks and there is nothing wrong with this providing the people who donate know how the money is being spent and it is correctly regulated.”

The foundation is listed as a ‘constituted community group’ but Ms Collins previously said they are looking at applying for charity status.

Councillors called for an investigation, while Hyndburn and Haslingden MP Graham Jones asked for a review of the Charities Commission which regulates charities.

Ms Collins said she had not been paid since the end of last year but is still volunteering.

She said: “I have not been paid £24,000 over five years.

“In 2013 I was getting paid but it was nothing to do with donated money. That money was not used.

“We have asked the accountant to pull up cash donations to demonstrate where they have been spent in terms of fresh food.

“I realise why people might be cross and I have seen lots of comments about it.”

Cllr Alyson Barnes, leader of Rossendale Council. said: “These are serious allegations and clearly Raft need to respond.”

Cllr Anne McMahon, whose ward covers the foodbank, said: “I would support calls for an investigation.

“It makes sense to do so if only to clear the organisation’s name or if not to make sure public money is not being misappropriated.”

Mr Jones said: “The serious allegations at Raft appear to have split the organisation and damaged its reputation.

“Most people would presume Raft was a charity and it has received numerous payments despite not having charitable status.

“I know there are many fantastic groups, too small in size to seek charitable status that too deserve the public’s support including financially.

“However the charities commission and Parliament have failed to address anomalies and huge loopholes exist that allow for rogue practices and rogue individuals to operate within the charitable sector.”

A police spokesman said they had looked into the allegations but nothing fraudulent had occurred and no further action was taken.