Letterkenny’s Good and New cancer charity has been threatened with legal action.

The shock development comes only two months after it was alleged that the charity received over €400,000 more than it spent in the two years previous.

It emerged this morning that the Charities’ Regulator is now threatening to prosecute the charity - which runs the Donegal Cancer Bus to transport cancer patients for lifesaving treatment.

A spokeswoman for the charity has issued a statement to Donegal Now in response to the Charities’ Regulator threat.

She said that the charity has “only the best interests of those they serve at heart” and pledged that it is “working hard to implement the compliance requirements” made by the Regulator.

Sanctions have now been imposed by the Regulator following a recent site inspection amid accusations that the charity is not fully compliant with “its legal obligation to keep proper books of account”.

A donation being made to the Good and New charity for its Cancer Bus.

The charity must now implement recommendations from the Regulator.

These recommendations include introducing regular financial reporting and ensuring that all financial reports are scrutinised by the charity’s trustees.

A spokesman for the Regulator warned: “The Charities’ Regulator has imposed intermediate sanctions on the Donegal-based charity Good and New shop (Registered Charity Number 20074432), under section 73 of the Charities Act 2009.”

He added: “Failure to comply with this notice will result in the Charities’ Regulator bringing a prosecution against the Good and New Shop.”

A spokeswoman for Good and New responded in a statement.

She said: “The Regulator found some corporate governance and compliance issues that need to be addressed.

“The Good and New Charity is run by a group of volunteers who provide a much needed service in Donegal, and have only the best interests of those they serve at heart.

“The volunteers are working hard to implement the compliance requirements, which the Regulator has requested, within the time period specified and this at an advanced stage.

“Everyone involved is keen to ensure these changes are in place as soon as possible so that the Good and New charity can focus on continuing to do good work for those who depend on their services in Donegal.

“We will ensure that a statement is issued once the Regulators recommendations have been put in place."

If you have a story or want to send a photo or video to us please contact the Donegal Now editorial team. Between 9am and 5pm Monday to Sunday please call 074 9112712. Between 5pm and midnight please call or text 086 792 2103. Or you can email [email protected] at any time.