THE founder of ShelterBox said a rumour about handing his son a lucrative deal so he could buy a house was started by an over-excited employee holding a cheque for £263,200 in his hand.

Tom Henderson, 64, is accused of ensuring contracts for camping and survival equipment were given to his 35-year-old son John's companies between 2007 and 2012.

The former CEO admitted involvement in a £526,400 order to buy 10,000 stoves from John Henderson's firm, Camping Solutions, in which it was agreed to pay half the total up front.

But giving evidence at the Old Bailey today (Thurs) Tom Henderson insisted there was no attempt to conceal the cheque paid in October 2008.

He told the court everyone at the international disaster relief charity knew about the purchase of the wood-burners, which are still provided in aid packages to this day.

The court has heard the money was used by his son to buy a house in Hayle, Cornwall.

But former Navy rescue diver Tom Henderson told jurors the claim was simply not true and was a rumour started by logistics manager Richard Lewis.

'I think it was the euphoria of having a cheque for a quarter of a million pounds in his hands,' he said.

'He told people this was for John to buy a house with, which was totally inappropriate and not true.'

Tom Henderson said he and wife Jane, now deceased, remortgaged their own property in Helston, Cornwall to give his son £160,000 to buy the house eight miles away, while he received a deposit of £90,000 from his company.

Jurors have heard ShelterBox paid large sums of money to companies linked to inventor John Henderson for contracts to supply tents, wood-burning stoves and utility tools.

But asked if he put his son 'on top of the pile' for providing equipment to ShelterBox, Tom Henderson replied: 'No, not at all.

'He was part of the DNA of ShelterBox...It was quite normal for people within the organisation to approach John for solutions - whether that's handling a crane, fixing a door or something like this.'

He said he commissioned tests of the stoves and multi-tools developed by his son's companies because he wanted an independent review.

'I think there were questions about third party material being supplied and its effectiveness and value for money,' Tom Henderson added.

The defendant told jurors staff at ShelterBox would undertake a 'comprehensive search' of equipment for cost and quality and would look to develop bespoke items where they didn't exist.

'For me the whole process was to deliver a quality package we could all be proud of,' said Tom Henderson.

The Hendersons are standing trial at the Old Bailey alongside Darren Gervis, 42, charged with conspiracy to commit fraud.

It is claimed that Gervis was brought in to help hide the alleged fraud when trustees of the charity began to ask questions about the deals.

Tom Henderson set up ShelterBox in his garage in 2000 to deliver humanitarian aid to the victims of man-made and natural disasters around the world and was 'responsible for saving hundreds if not thousands of lives', the court has heard.

It had international affiliates in America, Australia and Europe and rapidly expanded on the back of its idea of putting all the items needed for survival into robust plastic boxes.

Henderson was awarded the OBE in 2010 for his work and HRH The Duchess of Cornwall became the charity's President and Royal Patron in August 2007.

Gervis, of Meadowside, Mosterton, Beaminster, Dorset; Thomas Henderson, of Barbican Way, Helston, Cornwall; and John Henderson, of (8) Copper Hill, Hayle, Cornwall, deny conspiracy to commit fraud between 15 January 2007 and 31 December 2012.

The trial continues.