Dr Rita Austin, former chair of the All Wales Ethnic Minority
Association (Awema), told an employment tribunal she acted responsibly as an
employer.
Awema finance director Saquib Zia is claiming unfair dismissal.
He was accused of gross misconduct and sacked in February after a Welsh
government audit report.
The report, launched after allegations of financial mismanagement at
Awema, warned of "significant and fundamental failures".
Dr Austin told the tribunal in Cardiff that Mr Zia, who earned more than
£50,000 a year, could not be offered an opportunity to appeal the decision
because Awema "ran out of road" when its Welsh government funding was
terminated.
With the Charity Commission launching its own inquiry, she said Awema
needed to act "decisively" in the wake of the report.
Dr Austin said the charity's reputation had been "trashed" and
she was worried other black and ethnic minority charities were in danger of
being "tarnished".
Christopher Howells, counsel for Mr Zia, asked if his client had been
made a "scapegoat... removing the spotlight from others in the
organisation". Dr Austin said: "There was no feature that we were
scapegoating anybody. "They were held responsible for those decisions for
which they were responsible."
The decision to summarily dismiss Mr Zia was taken on the basis of the
Welsh government's audit findings, Dr Austin said.'
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