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Welsh Government pays £13m to settle contract claims

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THE WELSH Government made a £13m “special payment” to settle claims over road contracts and lost more than £2m on defunct technology, according to scrutiny of annual accounts.

Welsh ministers shelled out £13.1m, excluding VAT, after contractual claims for additional money for three road projects amid spiralling costs due to high inflation.

Andrew Goodall, the Welsh Government’s permanent secretary, said in a letter that his officials sought to settle all claims with the contractor in the interests of value for money.

Pressed by the Senedd’s public accounts committee about the consequences of not settling, Dr Goodall raised the risk of delays to roadworks and the loss of European funding.

He wrote: “Not settling all claims would have left the Welsh Government open to the risk of unsettled claims being leveraged by the contractor at a later date.”

Wales’ most senior civil servant added: “Whilst there’s no guarantee the contractor would have commenced formal dispute proceedings for amounts they considered were due, it was deemed that there was a real chance of them doing so.”

He said such push back was not unique to the Welsh Government, with other public bodies also grappling with the reality of contractors no longer being willing to take on certain risks.

In his letter to the public accounts committee, the ex-NHS Wales chief confirmed the payment was discretionary and made as a result of the government’s policy position.

Politicians on the committee called for more information in their scrutiny of the Welsh Government’s 2023-24 accounts which provided few details of the “special payment”.

Members questioned how the £13.1m compares to the overall value of the road projects and whether it represents a negotiated settlement below the total value of the contractor’s claims.

The committee also called for clarity after the accounts revealed a £2.27m loss to the public purse from spending on “defunct” equipment for a green social housing scheme.

As part of its “Optimised RetroFit Programme”, the government made a “fruitless payment” for intelligent energy systems (IES) only to discover the devices could not be upgraded.

Explaining the loss, Dr Goodall pointed to a lack of clarity in reporting and escalation which meant the Welsh Government was unaware the units were useless until it was too late.

He wrote: “A detailed and thorough lessons learnt process has been completed, in which all parties have considered and reflected upon their role and responsibilities….

“The initial IES devices represented one of the first tranches of monitoring units of this kind, so were exposed to the inherent risks associated with new technologies.”

In his foreword to the report, chair Mark Isherwood outlined serious concerns about the Welsh Government’s “unsatisfactory” oversight of 48 arm’s-length bodies.

Conservative MS Mark Isherwood
Conservative MS Mark Isherwood

Ministers have paused a programme of tailored reviews, with only two completed – for the National Library of Wales in 2020 and Amgueddfa Cymru (Museum Wales) in 2023.

The public accounts committee has criticised a move to an alternative lighter-touch, self-assessment model which has taken more than six years to implement.

The report, which makes 18 recommendations, also expressed concerns about a data breach as the Welsh Government rolled out a new HR system called Pobl.

Dom Houlihan, director of people, told the committee: “Some line managers were able to view data they shouldn’t have been able to,” prompting an immediate security review.

The scrutiny report, which was published on Monday, called for an update on the Welsh Government’s £14m attempt to attract sports carmaker TVR to Wales.

Ministers spent £4.75m buying a factory in Ebbw Vale in 2021, £7.6m on refurbishment, £2m on a five-year loan for TVR and £500,000 on shares – only for the venture to fall through.

The committee said: “We are concerned the property remains vacant and the investment as it currently stands is not generating any income nor representing value for money.”

Senedd members also expressed concerns about the damning “no assurance” findings of internal audits of the Welsh Government’s framework for managing major projects.

Their 60-page report similarly raised alarm bells about a leaked staff survey which painted a picture of a culture department in “chaos”, with “no sense of longer-term strategic planning”.

 

Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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News

Watchdog criticises health board over £10m GP contract checks

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A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.

 

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News

Welsh Conservatives demand clarity over EHRC guidance in schools

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THE WELSH CONSERVATIVES have called on the Welsh Government to clarify whether new Equality and Human Rights Commission guidance will be implemented in schools across Wales.

Shadow education minister Sam Rowlands MS has written to Cabinet Minister for Education and the Welsh Language Anna Brychan MS following the UK Supreme Court ruling on the Equality Act.

Mr Rowlands said schools, teachers, governors and parents needed clear answers on how the guidance would apply in practice, including on single-sex spaces, safeguarding, changing facilities and sports participation.

He said: “Parents, teachers and pupils deserve clarity from the Welsh Government.

“Schools cannot be left in limbo while ministers avoid making a decision on such an important safeguarding and legal issue.

“The Equality Act applies in Wales, and schools now need clear guidance on what this means in practice.”

In his letter, Mr Rowlands asks whether updated guidance will be issued to schools in Wales, whether schools will be expected to amend existing policies, and what advice will be given to headteachers on safeguarding and compliance with the Equality Act.

He also asks whether the Welsh Government intends to diverge from the approach set out by the EHRC.

The letter says schools and parents require “clear and consistent guidance” to ensure the rights, dignity and safety of all pupils are respected.

 

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