From today’s Western
Mail ‘Welsh
Government Ministers and former Ministers are to be interviewed as part of a
top-level inquiry arising out of financial irregularities at the ethnic
minorities charity Awema, we can reveal.
An unspecified number of senior Welsh politicians have been asked to meet officials of the Wales Audit Office (WAO) who are examining whether sufficient scrutiny was exercised over the now defunct organisation. Awema received millions of pounds from public funds to run projects aimed at improving the employment prospects of people from ethnic minorities.
Earlier this year the
Western Mail revealed how trustees of Awema – the All Wales Ethnic Minority
Association – had called in an external investigator to look into allegations
of financial impropriety.
The investigation
report showed that Awema’s chief executive Naz Malik had used a cheque drawn on
the organisation’s bank account and pre-signed by its treasurer to pay off a
personal credit card debt of £9,340.36. When questioned, Mr Malik said he
regarded the payment as an advance on his expenses.
The report also
raised concerns about salary increases given to the chief executive’s daughter
Tegwen, who was employed as Awema’s operations director, stating that they had
not been properly authorised. Her annual salary increased from £20,469 in
January 2008 to £50,052 in August 2011.
In February a joint
report from the Welsh Government’s internal audit services and the Big Lottery
Fund – another funder – resulted in all public funding to Awema being cut off.
It said trustees of
Awema, including Mr Malik, had shown “little regard to the recognised standards
in public life”.
The report concluded:
“This forensic investigation has identified significant and fundamental
failures in the control and governance framework within Awema.
In light of these
findings we cannot provide any assurance that there are appropriate
arrangements in place to safeguard and make proper use of the Welsh Government,
Wefo [the Welsh European Funding Office] and the Big Lottery Funds entrusted to
Awema.
“These failings
permeated the whole of the organisation and suggest that the trustees,
including the chief executive, had little regard to the recognised standards in
public life and the full range of their statutory responsibilities under
charities and companies legislation.”
Mr Malik was
subsequently dismissed and Awema was wound up, with other organisations taking
over its projects.
The Western Mail has
seen the text of an email sent by a WAO official to Ministers and former
Ministers which states: “You may be aware that the Permanent Secretary has
requested the WAO should conduct a full and independent review of the history
of Awema by the Welsh Government'
The full article is HERE