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Clydach Development Trust funding doubts, following administration

By SWEPnino  |  Posted: January 08, 2014

Clydach Development Trust funding doubts, following administration

Forge Fach in Clydach

Comments (4)

The Welsh Government is looking to claw back funding it provided to a Swansea Valley Trust which went into administration after running up losses in the ‘tens of thousands of pounds’.

But creditors are likely to be disappointed, according to liquidators.

Receivers were called into to The Cwmni Clydach Development Trust last September, after running up a debt which Swansea Council described as ‘substantial’.

The trust, which is independent of Swansea Council, was run by a board of volunteer directors, and responsible for the running of the Forge Fach Community Resource Centre.

Swansea Council has taken over the temporary running of both Forge Fach, to enable groups that use the buildings to continue to do so.

Deputy minister for tackling poverty Vaughan Gething has written to Bethan Jenkins AM to say where legally entitled, the Welsh Government will be looking to claw back funding.

The Trust’s former chairman Wyn Jones said: “The Trust was formerly dissolved in October, and administrators are dealing with everything.”

But a spokesman for liquidators Stones & Co said: “The realisation of assets will not enable the distribution of the Trust’s debts.”

Bethan Jenkins AM added: “The Welsh Government must continuously monitor where its money goes so situations like this, which put local business Forge Fach Nursery at risk of closure, do not arise in future, because of the impact on local people that rely on services.”

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4 comments

  • thomastdout  |  January 10 2014, 8:31PM

    Typical Communities First disaster.

  • Jiffy  |  January 09 2014, 5:35PM

    Forge Fachmight have succeeded if they'd not allowed a commercial business to get away with paying stupidly low rents to use the building. Such ventures should be run by people with with the ability to run a business and know how to make profit.

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  • Dai_Chotomy  |  January 08 2014, 4:41PM

    You said, "Swansea Council has taken over the temporary running of both Forge Fach, to enable groups that use the buildings to continue to do so". How can you have "both Forge Fach"?

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  • GorsseinonJoe  |  January 08 2014, 4:09PM

    Bethan Jenkins would be far better advised to stop throwing our money at no hope ventures that squander public money. And appointing managers that fail to highlight financial problems until it has run up more debts before coming clean. Another case of jobs for the boys, our money going down the drain and a fancy building that will rot.

    |   2

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