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Regeneration cash 'was diverted' Regeneration cash 'was diverted'
(30 minutes later)
An unpublished report into a community regeneration scheme makes "disturbing reading," says a Welsh Assembly Government minister.An unpublished report into a community regeneration scheme makes "disturbing reading," says a Welsh Assembly Government minister.
Carl Sargeant told AMs an audit report on Plas Madoc Communities First in Wrexham identifies "serious weaknesses in financial control and governance."Carl Sargeant told AMs an audit report on Plas Madoc Communities First in Wrexham identifies "serious weaknesses in financial control and governance."
The social justice minister said public funds had been "diverted" from the purpose of the programme.The social justice minister said public funds had been "diverted" from the purpose of the programme.
But he dismissed speculation about ending funding of the whole scheme.But he dismissed speculation about ending funding of the whole scheme.
However, he said his department would require additional assurance from Communities First partnerships that their financial management and governance arrangements were robust before committing further substantial funding.However, he said his department would require additional assurance from Communities First partnerships that their financial management and governance arrangements were robust before committing further substantial funding.
I deplore both the deliberate actions and the omissions of oversight and stewardship which have led to public funds being diverted from the overall intended purpose of the programme Social Justice Minister Carl SargeantI deplore both the deliberate actions and the omissions of oversight and stewardship which have led to public funds being diverted from the overall intended purpose of the programme Social Justice Minister Carl Sargeant
Mr Sargeant told the assembly he had been briefed on the "disturbing" findings of an audit report into Plas Madoc Communities First which will be published within the next few days.Mr Sargeant told the assembly he had been briefed on the "disturbing" findings of an audit report into Plas Madoc Communities First which will be published within the next few days.
He said: "I deplore both the deliberate actions and the omissions of oversight and stewardship which have led to public funds being diverted from the overall intended purpose of the programme."He said: "I deplore both the deliberate actions and the omissions of oversight and stewardship which have led to public funds being diverted from the overall intended purpose of the programme."
The scheme, one of 157 across Wales which aim to regenerate the poorest areas by empowering local people to influence service delivery, has received millions of pounds of public money since 2001.The scheme, one of 157 across Wales which aim to regenerate the poorest areas by empowering local people to influence service delivery, has received millions of pounds of public money since 2001.
Mr Sargeant said: "The audit report makes disturbing reading. It identifies serious and widespread weaknesses in financial control and governance within the Plas Madoc partnership. "Mr Sargeant said: "The audit report makes disturbing reading. It identifies serious and widespread weaknesses in financial control and governance within the Plas Madoc partnership. "
Watch Carl Sargeant's statement: From Democracy Live
"I am sure that other members, like me, will wish to condemn the behaviour of those who have put personal gain above the benefit intended for local people in one of the most deprived communities in Wales.""I am sure that other members, like me, will wish to condemn the behaviour of those who have put personal gain above the benefit intended for local people in one of the most deprived communities in Wales."
Mr Sargeant said of £47m invested in Communities First during the current financial year, £480,000 had gone to Plas Madoc, and that the majority of that funding had been used for its intended purpose.Mr Sargeant said of £47m invested in Communities First during the current financial year, £480,000 had gone to Plas Madoc, and that the majority of that funding had been used for its intended purpose.
He said a wide range of services have been delivered to the community, including support for children and young people.He said a wide range of services have been delivered to the community, including support for children and young people.
'Good work''Good work'
The minister said failings in Plas Madoc should not undermine good work being done by many Communities First Partnerships across Wales.The minister said failings in Plas Madoc should not undermine good work being done by many Communities First Partnerships across Wales.
He said: "It has been suggested that the failings of the Plas Madoc partnership can be generalised across the wider Communities First programme.He said: "It has been suggested that the failings of the Plas Madoc partnership can be generalised across the wider Communities First programme.
"Those suggestions are not made on the basis of any evidence of which I am aware. Indeed, I am sure that other partnerships will be only too keen to distinguish themselves from the behaviours evident there."Those suggestions are not made on the basis of any evidence of which I am aware. Indeed, I am sure that other partnerships will be only too keen to distinguish themselves from the behaviours evident there.
Plas Madoc is among the top 10% most deprived areas in WalesPlas Madoc is among the top 10% most deprived areas in Wales
"Those genuinely working for the benefit of disadvantaged communities in Wales can be assured of my support."Those genuinely working for the benefit of disadvantaged communities in Wales can be assured of my support.
"However, while I wish to see investment in the Communities First programme continue, I will be requiring specific additional assurance from partnerships that their financial management and governance arrangements are robust before committing further substantial funding.""However, while I wish to see investment in the Communities First programme continue, I will be requiring specific additional assurance from partnerships that their financial management and governance arrangements are robust before committing further substantial funding."
The minister said he had written to each partnership stressing the importance of adhering to the Nolan standards of conduct in public life.The minister said he had written to each partnership stressing the importance of adhering to the Nolan standards of conduct in public life.
Mr Sargeant said he would not be deflected from improving Wales' most deprived communities, "by the failings of a few individuals or a partnership which sullies the reputation of others by its deplorable actions."Mr Sargeant said he would not be deflected from improving Wales' most deprived communities, "by the failings of a few individuals or a partnership which sullies the reputation of others by its deplorable actions."
Welsh Liberal Democrat spokesperson for communities Eleanor Burnham said projects like Communities First had to be accountable to the taxpayer if they were to maintain their independence.Welsh Liberal Democrat spokesperson for communities Eleanor Burnham said projects like Communities First had to be accountable to the taxpayer if they were to maintain their independence.
She said: "It is very disappointing to find that people who depend on Communities First can be let down so badly.She said: "It is very disappointing to find that people who depend on Communities First can be let down so badly.
"The assembly government's internal audit service worked jointly with the Wales Audit Office on the Plas Madoc partnership difficulties and the Minister must now make sure that all of Wales' 157 Communities First schemes deliver support and services in an appropriate manner.""The assembly government's internal audit service worked jointly with the Wales Audit Office on the Plas Madoc partnership difficulties and the Minister must now make sure that all of Wales' 157 Communities First schemes deliver support and services in an appropriate manner."