Welsh Government writes off £1.6m after failed Porthcawl Maritime Centre project

The Welsh Government has formally written off more than £1.6 million in public funding after a planned Maritime Centre in Porthcawl collapsed without being built.

A new report from Audit Wales found “basic failings” in the way the project was managed, concluding that warning signs and opportunities to limit the loss were missed.

The centre — planned for the harbourside — was intended to include a coastal science and discovery hub, well‑being facilities, a café and restaurant, group accommodation and events space. It was promoted as a flagship attraction to boost tourism, celebrate maritime heritage and support regeneration.

Funding and collapse

In 2016 and 2017, the Welsh Government approved up to £2.7 million for the scheme, combining European Regional Development Fund (ERDF) support with domestic match funding.

The project was led by Credu Charity Ltd, working with Bridgend County Borough Council. Between May 2016 and March 2020, £1.6 million was paid to Credu.

By August 2020, amid concerns over rising costs and slow progress, the Welsh Government withdrew ERDF funding and sought to recover the grants. In November that year, Credu entered voluntary liquidation and the Maritime Centre was never built.

A police investigation into matters relating to the project concluded in 2024 with no charges brought. Audit Wales says it is unlikely any of the £1.6 million will be recovered.

Oversight criticised

Audit Wales found a lack of clarity over roles between the Welsh European Funding Office and Visit Wales, ineffective monitoring, and late or insufficient due diligence. Public money was committed before full match funding was secured, and controls over expenditure claims were described as weak.

Auditor General Adrian Crompton said:

“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.”

In a written statement to the Senedd, Cabinet Secretary for the Economy, Energy and Planning Rebecca Evans confirmed the write‑off, describing the loss as a “Claims Waived and Abandoned” entry in line with public money rules. She said lessons from the case had informed stronger pre‑payment checks, earlier risk identification and tighter expenditure controls.

Political reaction

Welsh Conservative finance spokesperson Sam Rowlands MS called the loss “another colossal waste of taxpayers’ money” and said the Auditor General’s review showed the Welsh Government “did not put proper arrangements in place to manage the risks”.

The Welsh Government said it accepted Audit Wales’ conclusions and noted that “ultimate reasons for the Maritime Centre’s failure were complicated and outside the scope of this report”.

Funds originally earmarked for the Maritime Centre were reallocated to Bridgend Council for a smaller development at Cosy Corner, which has since opened to house local retail and start‑up businesses.

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#AuditWales #BridgendCountyBoroughCouncil #CosyCorner #CreduCharityLtd #ERDF #EuropeanRegionalDevelopmentFund #Porthcawl #PorthcawlMaritimeCentre #RebeccaEvansMS #VisitWales #WelshEuropeanFundingOffice #WelshGovernment

Town council seeks to reassure residents £800k has ‘not gone missing’

Ammanford Town Council has looked to reassure residents about its finances and financial practices after being criticised by Wales’ Auditor General for “serious failures in governance and financial management” over a period of 10 years.

The town council has responded saying that the previous administration “failed to ensure that correct accounting procedures were followed and failed to continuously monitor the Council’s finances”.

It added that from this year, its finances “are now robust, transparent, and properly managed”.

Ammanford Town Council said, in a statement following its council meeting on 28 April: “Ammanford Town Council wishes to update residents on the findings of the aforementioned Audit Wales report, published on our website and social media platforms. Residents are understandably extremely concerned; we therefore wish to provide some important clarification.

“Previous concerns raised about financial accountability were due to the lack of completed audits between the financial year’s 2015-16 and 2023-24. During December 2018-2019, the Council were made aware of many issues and focused on completing the 2015-16 and 2017-18 audits, however this work was not finalised as required by the permanent Clerk appointed in December 2019 and the Council as a whole.

“We want to reassure the public that £800,000 has not ‘gone missing.’ The previous administration failed to ensure that correct accounting procedures were followed and failed to continuously monitor the Council’s finances.

“Audit Wales have worked with Ammanford Town Council to finalise the earlier years of account and Interim Officers, appointed by the current Members, have ensured completion of the 2022-23 and 2023-24 years of account. This information can be found on our website.

“In the Full Council meeting of the 28th April 2025, the Council received a detailed end-of-year report (2024-25) from the Council’s Responsible Financial Officer, showing all funds from this financial year have been accounted for and financial procedures are now robust, transparent, and properly managed.

“The current Ammanford Town Council, along with its dedicated officers, are fully committed to serving the people of Ammanford with the highest standards of care and responsibility. Every penny gathered through the local precept is used to enhance our community, and we are determined to ensure that public funds are managed effectively and for the benefit of all.”

#Ammanford #AmmanfordTownCouncil #AuditWales #AuditorGeneral

Auditor General criticises Town Council for decade-long financial mismanagement

In a damning new report, Adrian Crompton, the Auditor General for Wales says “the Council has not maintained proper and complete accounting records” and has been “unable to provide contractual documentation or supporting documentation to evidence that it has followed its standing orders and financial regulations.”

Mr Crompton adds that “adequate information has not been provided to Councillors regarding the approval of payments made” and he has been “unable to confirm whether the payments were made were done so under proper authority.”

“In addition to presenting the accounts for a given year, the Annual Return requires the Council to make a formal declaration in relation to the arrangements it has in place for its governance and financial management. This is referred to as the Annual Governance Statement.

“I consider it important to note that the standards required to be disclosed by the Annual Governance Statement are the minimum standards that the electors of Ammanford Town Council should expect to be upheld.

“I draw attention to the fact that the Council has, by its own admission, failed to meet these standards and has provided negative responses to many of the aspects of proper governance covered by the Annual Governance Statement.

“What is clear to me is that since 2016, even though its failings and deficiencies have been brought to its attention by both internal and external audit, the Council’s past officers and its members have failed to ensure that it has established proper standards of financial management and governance.

“In failing to properly address the issues raised in the Public Interest Report and internal audit reports, Council members have not sufficiently recognised or acted upon issues in relation to the adequacy of their governance arrangements.”

Mr Crompton says that “although it has failed to meet the statutory timetable for each year, the Council has now prepared accounts up to and including the 2023-24 financial year but needs to publish the accounts online.

“Although the 2021-22 accounts do not appear to have been approved and 2022-23 and 2023-24 accounts were late, all outstanding accounts have now been submitted for audit.”

He added that “a lack of clarity of the terms of engagement for [a firm of accountants] may have led to a significant increase in the cost of services provided to the Council”.

He went on to say that “significant deficiencies in the Council’s accounting records mean that I am unable to conclude on whether or not the accounts for 2018-19 to 2021-22 properly present the Council’s income and expenditure” and that “the Council has significantly changed its accounting system twice since 2018-19.”

Mr Crompton says that his audit has “identified several significant weaknesses and omissions in the Council’s records” and that “the Council has insufficient records to support expenditure and is unable to demonstrate that payments have been approved.

“Contract record keeping and thus contract management is poor.”

He added that “the lack of available records and the uncertainties around the expenditure incurred by the Council means I am unable to conclude on whether or not the accounts for 2018-19 to 2021-22 properly present the Council’s income and expenditure.”

In his report, Mr Crompton has made three recommendations to Ammanford Town Council to improve its financial management and governance arrangements.

That the Council should review and maintain a contract register for all contractual obligations and communicate this to the Council members.

The Council should ensure all contracts are awarded in line with its Standing Orders and Financial Regulations and maintain adequate accounting records demonstrating compliance

The Council should ensure it uses official communication channels for Council business.

Swansea Bay News has contacted Ammanford Town Council for comment on the Auditor General’s report.

#Ammanford #AmmanfordTownCouncil #AuditWales #AuditorGeneral

From firefighting to future-proofing; Audit Wales event

https://boards.wales/2025/01/30/firefighting-to-futureproofing/