The judge's decision fully vindicates the commission's decision to appoint a receiver and manager to a charity that lacked effective management and misused its position

Charity Commission director of operations Simon Gillespie

The programme looked at claims the charity appeared to exist primarily to support its employees by spending more on salaries and overheads than on supporting brain-injured children.

The commission has confirmed Catch had inappropriately claimed �680,000 in tax relief from the Inland Revenue since April 2000.

The High Court has granted the commission a winding-up order against the charity.

Managers were appointed by the commission in February to take over the day-to-day running of Catch.

Charity Commission's Simon Gillespie

The charity raised more than �1m during 2000 but accounts over a three-year period showed it spend only 20p-in-a-pound on providing services.

The commission's management were soon able to confirm concerns that the charity had been claiming Gift Aid from the Inland Revenue to which it was not entitled.

As Catch does not have sufficient assets to cover the liability to the tax man, the receiver and manager approached the High Court for a winding-up order, which was granted.

Simon Gillespie, the commission's director of operations, welcomed the judge's decision.

"The commission raised concerns over the Gift Aid claims with the trustees who assured us that they were correctly administering the scheme.

MP Simon Thomas: Call to tighten charity laws

"This quite clearly was not the case.

"Whilst we regret that any charity should be forced to close, the judge's decision fully vindicates the commission's decision to appoint a receiver and manager to a charity that lacked effective management and misused its position."

Following the BBC Wales programme, the MP for Ceredigion, Simon Thomas, asked the government to tighten charity laws.

He wants to know if people who donate to charity can be clearly the minimum amount which will be put to charitable purposes.

Week In, Week Out also highlighed a second Welsh charity, The Kidney Research Unit Foundation for Wales or Kruf, which had been told to radically change its fund-raising activities.

It spent 60% of its income on overheads last year and only 29% directly on kidney patients.