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Plas Madoc public inquiry call | |
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Claims the Welsh Assembly Government knew of financial mismanagement at a regeneration scheme but failed to act have led to calls for a public inquiry. | Claims the Welsh Assembly Government knew of financial mismanagement at a regeneration scheme but failed to act have led to calls for a public inquiry. |
The Plas Madoc Communities First scheme in Wrexham had "fundamental weaknesses of management", an audit report said. | The Plas Madoc Communities First scheme in Wrexham had "fundamental weaknesses of management", an audit report said. |
The report said the assembly government had been alerted to problems in 2003. | The report said the assembly government had been alerted to problems in 2003. |
Claims included a finance officer using public funds to pay his Child Support Agency contributions and another the purchase of a car out of petty cash. | |
The assembly government referred to concerns in 2003, when Wrexham council was "responsible for exercising oversight" of the scheme. | |
Plaid Cymru AM Janet Ryder said a "full public inquiry" should be held into why the assembly government failed to act until a whistleblower came forward last year. | Plaid Cymru AM Janet Ryder said a "full public inquiry" should be held into why the assembly government failed to act until a whistleblower came forward last year. |
"This must be one of the worst audit reports I've read in 10 years of being in the national assembly," she said. | |
"The previous Labour government have known since 2003 that these concerns needed looking into. [The report] raises a number of questions and must now lead to a full public inquiry." | |
AUDITOR FINDINGS A number of payments had been made to people who were not partnership staff members, many of whom the report says "are related to the coordinator"The coordinator's brother received a mobile phone from the partnership costing £1,460Another brother received £40,615 for providing "Brazilian ju jitsu training" At a glance - Plas Madoc audit | AUDITOR FINDINGS A number of payments had been made to people who were not partnership staff members, many of whom the report says "are related to the coordinator"The coordinator's brother received a mobile phone from the partnership costing £1,460Another brother received £40,615 for providing "Brazilian ju jitsu training" At a glance - Plas Madoc audit |
The assembly government has provided more than £3.5m of funding to the organisation in recent years. | The assembly government has provided more than £3.5m of funding to the organisation in recent years. |
Auditors found those governing the partnership "had little regard to recognised standards in public life". | Auditors found those governing the partnership "had little regard to recognised standards in public life". |
They noted many examples of what representatives of the partnership reportedly referred to as a "culture of generosity" created for staff and associates. | They noted many examples of what representatives of the partnership reportedly referred to as a "culture of generosity" created for staff and associates. |
This included "generosity with public funds applied to Plas Madoc Communities First trustees, employees and their families and friends", the report said. | This included "generosity with public funds applied to Plas Madoc Communities First trustees, employees and their families and friends", the report said. |
Plas Madoc Communities First trustees board chairman Mark Leather said the partnership had co-operated fully with the audit team and suspended two members of staff at the outset of the investigation. | Plas Madoc Communities First trustees board chairman Mark Leather said the partnership had co-operated fully with the audit team and suspended two members of staff at the outset of the investigation. |
Ms Ryder added: "They have had £3.5m of public money put into Plas Madoc. | Ms Ryder added: "They have had £3.5m of public money put into Plas Madoc. |
"Some projects, yes, have been a success. Not many of them actually relate to what people on Plas Madoc really, really wanted and that relates to Communities First itself. | "Some projects, yes, have been a success. Not many of them actually relate to what people on Plas Madoc really, really wanted and that relates to Communities First itself. |
'Arrangements changed' | 'Arrangements changed' |
"But the fact that no government, no Labour government since then, thought that perhaps they should look at how that £3.5m of public money was being used is concerning." | "But the fact that no government, no Labour government since then, thought that perhaps they should look at how that £3.5m of public money was being used is concerning." |
An assembly government spokesperson said: "The auditor general's report makes reference to concerns regarding the Plas Madoc partnership in 2003 when Wrexham council, as the grant recipient body, were responsible for exercising oversight of the partnership. | An assembly government spokesperson said: "The auditor general's report makes reference to concerns regarding the Plas Madoc partnership in 2003 when Wrexham council, as the grant recipient body, were responsible for exercising oversight of the partnership. |
"Those arrangements changed in 2006 when the partnership became the direct recipient of grant from the assembly government. | "Those arrangements changed in 2006 when the partnership became the direct recipient of grant from the assembly government. |
"The minister in his statements this week has called for a review of the scope of audit certification, currently agreed annually with WAO [Wales Audit Office], and a review of the practice of existing external auditors in examining a limited range of evidence of expenditure." | "The minister in his statements this week has called for a review of the scope of audit certification, currently agreed annually with WAO [Wales Audit Office], and a review of the practice of existing external auditors in examining a limited range of evidence of expenditure." |