Wales’ Auditor General has said Senedd ministers made “basic failings” in the way financial support was managed for a project in South Wales.
Ministers approved a total at £2.7 million of potential funding towards a new “maritime centre” on Porthcawl harbourside in 2016 and 2017.
Credu Charity Ltd, which led on the project and worked closely with Bridgend Council, went into voluntary liquidation in 2020, and the maritime centre was not constructed.
Between 2016 and 2020, Senedd ministers paid £1.6 million to Credu for the project.
Audit Wales said Senedd ministers did not put proper arrangements in place to manage the risks associated with the project, and added that it was unlikely they would recover any of its claim during Credu’s liquidation.
Adrian Crompton, the Auditor General for Wales, said: “All grant funded projects involve an element of risk. But this is not the first time I, or my predecessors, have reported on weaknesses in the Welsh Government’s management of its support to charities or private companies.
“While time has passed since the events described in this report, there were basic failings in this case and the lessons from it remain relevant today.”
Andrew RT Davies MS said Senedd ministers had a track record of “pouring money into projects that just don’t get off the ground, at significant cost of the public purse.”
Andrew RT Davies MS, Senedd Member for South Wales Central and former Leader of the Welsh Conservatives, said:
“There’s absolutely a role to play for governments in supporting economic development so we can help our communities to thrive.
“However, when handing out funding, governments have to treat resources as precious, and manage risks properly, because every penny lost is money that could be supporting local communities through development or through our public services.
“It’s very concerning that Senedd ministers, who have been in place for a generation, aretoo often failing to carry out the basic work needed to ensure those resources are invested well and protected from unnecessary risk.
“Whether it’s Gilestone Farm, Brocastle business park, or the Porthcawl maritime centre, Senedd ministers have a significant track record of pouring money into projects that just don’t get off the ground, at significant cost of the public purse.”
ENDS