THE founder of ShelterBox has denied giving his son a quarter of a million pounds to buy a house as he gave evidence at the Old Bailey.

Tom Henderson, 64, 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.

The charity's former chief executive, who is accused of giving contracts to his 35-year-old son John's companies between 2007 and 2012, 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 on Thursday he insisted there was no attempt to conceal the cheque, and said everyone knew about the purchase of the wood-burners, which are still provided in aid packages to this day.

The court had heard the money was used by his son to buy a house in Hayle, but Tom Henderson told jurors the claim was simply not true and was a rumour started by logistics manager Richard Lewis.

He said: "I think it was the euphoria of having a cheque for a quarter of a million pounds in his hands.

"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, while he received a deposit of £90,000 from his company.

Asked if he put his son "on top of the pile" for supplying ShelterBox, Tom Henderson replied: "No, not at all."

He said he commissioned tests of the stoves and multi-tools developed by his son's companies because he wanted an independent review, and that staff would undertake a "comprehensive search" of equipment for cost and quality and would look to develop bespoke items where they didn't exist.

Continuing his evidence on Tuesday, Tom Henderson told jurors he stayed at "arms length" from any business deals between the charity and his son.

Prosecutor Walton Hornsby said he had failed to understand that the relationship was a problem for the international aid charity.

He replied: "I didn't think it was a problem - I thought it was perfectly adequate for me to say 'Arms length, nothing to do with me guys.'

"Nobody indicated to me after this that it wasn't enough. Arms length means other people know what is going on."

Mr Hornsby also suggested that Henderson "came very close" to jeopardising the relationship between ShelterBox and tent supplier Vango because of the role of John Henderson.

Henderson replied: "In retrospect and knowing what people had had to say, probably, yes."

He added: "At the time I had no idea that relationship would be at risk. Vango were well aware and we had permission to go out and seek competitive prices from other suppliers."

Henderson insisted there was no intention to "impact on Vango's intellectual property rights" by involving his son.

He told the court that his son was "a consultant in the process" and claimed that he wasn't aware of any financial benefits received by John Henderson such as commission.

Henderson also rejected a suggestion that he made "a sales pitch" on behalf of his son to the Red Cross.

He has now completed his evidence at the trial.

Thomas Henderson, of Barbican Way, Helston, Cornwall, and John Henderson, of Copper Hill, Hayle, Cornwall, deny conspiracy to commit fraud between 15 January 2007 and 31 December 2012, along with Darren Gervis, 42, of Meadowside, Mosterton, Beaminster, Dorset, who it is claimed was brought in to help hide the alleged fraud.

The trial continues.