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| 'Delay' after cash mis-use claims | 'Delay' after cash mis-use claims |
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| Claims of financial mismanagement at a project set up to help a deprived area should have rung alarm bells with the government earlier, an auditor says. | Claims of financial mismanagement at a project set up to help a deprived area should have rung alarm bells with the government earlier, an auditor says. |
| A "deeply worrying" auditor's report said it was alerted to problems at the Plas Madoc centre in Wrexham in 2003. | A "deeply worrying" auditor's report said it was alerted to problems at the Plas Madoc centre in Wrexham in 2003. |
| Claims included a finance officer using public funds to pay his Child Support Agency contributions and another purchasing a car out of petty cash. | Claims included a finance officer using public funds to pay his Child Support Agency contributions and another purchasing a car out of petty cash. |
| The organisation has been provided with more than £3.5m in recent years. | The organisation has been provided with more than £3.5m in recent years. |
| A highly critical report written by Wrexham Council was brought to the attention of the assembly government, and there calls for a public inquiry into why it failed to act. | A highly critical report written by Wrexham Council was brought to the attention of the assembly government, and there calls for a public inquiry into why it failed to act. |
| The Plas Madoc Communities First project, which employed 21 people, was set up to help an area which ranks as the third most deprived ward in Wales, home to around 1,800. | |
| 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 |
| But, an audit report found, it was dogged by "fundamental weaknesses of management". | But, an audit report found, it was dogged by "fundamental weaknesses of management". |
| Two members of staff have been suspended and the matter has since been referred to North Wales Police. | |
| As well as claims about staff members paying child support out of funds and buying a car from petty cash, it was alleged that more than £3,000 was spent on driving lessons for employees. | As well as claims about staff members paying child support out of funds and buying a car from petty cash, it was alleged that more than £3,000 was spent on driving lessons for employees. |
| Auditor Paul Dimbleby told Radio Wales: "We're told that because of changes within the assembly government and a bit of turmoil within the assembly government's Communities First unit at that time, basically that report was put on a shelf and not acted upon. | Auditor Paul Dimbleby told Radio Wales: "We're told that because of changes within the assembly government and a bit of turmoil within the assembly government's Communities First unit at that time, basically that report was put on a shelf and not acted upon. |
| "They certainly missed something. The alarm bells were ringing. I wouldn't say deliberately turned a blind eye. I think it was because of the various changes and shortages of staff and skills at that time within the Communities First unit. | "They certainly missed something. The alarm bells were ringing. I wouldn't say deliberately turned a blind eye. I think it was because of the various changes and shortages of staff and skills at that time within the Communities First unit. |
| "One conclusion you can easily draw is that the routine auditing of the Communities First partnership was not sufficiently robust so the very fact that it didn't pick up what was going on in Plas Madoc is a very serious issue in itself, but we can gain very little assurance that there aren't other Plas Madocs out there." | "One conclusion you can easily draw is that the routine auditing of the Communities First partnership was not sufficiently robust so the very fact that it didn't pick up what was going on in Plas Madoc is a very serious issue in itself, but we can gain very little assurance that there aren't other Plas Madocs out there." |
| On Wednesday, 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 - six years after it was first alerted to serious allegations. | On Wednesday, 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 - six years after it was first alerted to serious allegations. |
| "The previous Labour government have known since 2003 that these concerns needed looking into," she said. "[The report] raises a number of questions and must now lead to a full public inquiry." | "The previous Labour government have known since 2003 that these concerns needed looking into," she said. "[The report] raises a number of questions and must now lead to a full public inquiry." |
| 'Culture of generosity' | 'Culture of generosity' |
| 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. |
| Ms Ryder added: "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. | Ms Ryder added: "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. |
| "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." |
| 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. |
| 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." |