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.”