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My sister who is my mothers POA is awaiting sentencing after pleading guilty to a fraud in her employment of £52.000 . I applied for guardianship and was refused as the MHO was satisfied with the care package.

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Well, as the OP's dealing in £ sterling, s/he should have been applying for guardianship on the basis of objections to a Financial LPA and it's a bit hard to see why the care package as such would have come into it. Seems to have left the building though...
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Wonder if MHO means "Medical Health Officer"?
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What's an MHO?
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It probably would be a good basis for having her removed as a POA as soon as legally possible. A thief is a thief.
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