A CHARITY set up to help war veterans has been heavily criticised by a watchdog for failing to do enough about bullying claims after "boundaries were crossed".

The Mark Wright Project – set up in memory of a Scots soldier killed in Afghanistan – was criticised by the Office of the Scottish Charity Regulator (OSCR) following an investigation.

Staff were not trained and vulnerable people were exposed to confrontational behaviour which had a significant impact upon them, the watchdog said.

OSCR said the charity trustees were "seriously failing in their duty of care towards staff and potentially vulnerable service users" of the resource in Dalkeith, Midlothian.

The charity was set up in 2009 by Robert and Jem Wright, whose son Mark, 27, died trying to save soldiers in a minefield in Afghanistan in 2006.

It was designed to provide a place for traumatised veterans to talk about their experiences and to provide access to social and financial support. It also has gym facilities. The charity has taken on OSCR's recommendations, which include training staff.

Workers at the charity claimed Robert Wright used intimidating behaviour and that the service was failing in its duty of care.

OSCR upheld the complaint that trustees were failing to work in the best interests of the charity and "were not addressing complaints about the alleged intimidating behaviour of one of the directors, Robert Wright".

It called for the charity, which had an income of around £230,000 in 2011, to improve its procedures and "critically examine the continuing involvement of Robert Wright to ensure his contribution is used to the best interests of the charity and to help minimise the risk of a greater level of authority being conferred to him".

OSCR added: "At the interim stage of our inquiries we had serious concerns about the administration of the charity and set out preliminary findings and recommendations to be addressed urgently.

"We identified several instances where Mr Wright's actions fell short of the standards we would expect.

"Boundaries between his personal interest and the interests of the charity and its beneficiaries were crossed when he confronted clients he believed had been discussing his personal life. This is particularly concerning given the specific vulnerabilities of the client group that are at the centre of charity's purposes."

The watchdog ordered: "The board must put the interests of the charity and its beneficiaries first at all times, regardless of any personal feelings a charity trustee may have." It must ensure that "this confrontational behaviour is not repeated and that all representatives of the charity act professionally".

The charity said: "The current directors acknowledge the report's findings as largely accurate and recognise our need to learn from the experiences of the past 18 months. Many of the report's recommendations have already been actioned with the remainder due to take effect in the coming quarter, with on-going monitoring of standards throughout the charity's activities being a key component of strategy. Our only disappointment is that the report does not fully recognise that the recent employment tribunal, which was at the core of the complaint, was concluded in favour of The Mark Wright Project."

Alan Eccles, head of charity at law firm Maclay Murray & Spens, said the report "further reinforces the responsibilities and duties of charity trustees and the need for clarity over authority".

OSCR will monitor progress.