Politics
WG settles ‘scandalous’ land sale case
THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.
The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.
The settlement has been reached on a commercial basis and without any admission of liability by any party.
The detailed terms have been incorporated into a confidential settlement agreement between the parties.
The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.
RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.
It was a complete shambles.
One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.
Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.
Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.
The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.
“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.
“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.
“We will be asking what robust steps have been taken to avoid history repeating.”
RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.
But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.
It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.
Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.
The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.
The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.
Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.
“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”
Included in the scandal are:
- Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
- A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
- An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
- Land in Lisvane sold for £1.8million – worth £39million.
Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:
- £221m on uncompetitive Enterprise Zones
- £9.3m on flawed initial funding of the Circuit of Wales
- £97.9m on delays and overspend on the A465 Heads of the Valleys Road
- £157m on the M4 relief road inquiry
- Over £100m propping up Cardiff Airport
News
Welsh Government urged to adopt successful family court model
THE WELSH GOVERNMENT have been urged to adopt a successful family court model to help cut down on the number of children taken into care.
Speaking to the Siambr on Tuesday, Mid and West Wales MS Jane Dodds called for the adoption of the Family Drug and Alcohol Court model, which is a therapeutic problem-solving court model that focuses on allowing children to remain with their families where possible while also stopping parental drug misuse.
The Welsh Government had previously run a pilot version of the court model last year in Cardiff, which saw a remarkable decline in substance misuse and a rise in the number of children staying in parental care.
Drug misuse amongst parents declined from 83% to 54%, with 29% of parents achieving sobriety.
Meanwhile, the number of children in parental care more than doubled from 14% to 32%, resulting in more families staying together.
Despite successful results, the scheme was ended last year due to budgeting constraints.
Jane Dodds MS has criticised the Welsh Government for scrapping the scheme, and has asked them to reverse their decision and provide future long-term funding for the scheme, stating that “this court model could prove to be transformative to family justice here in Wales”
I was disappointed to see that, despite successful results from the pilot model in Cardiff, this potentially life-changing model was scrapped due to a withdrawal of funding by the Welsh Labour Government.
We have a golden opportunity here to change our system for the better, ensuring that children are able to stay together with their families, giving them a brighter future in the long-term.”
News
Plans unveiled for flood wall to reduce tidal flood risk in Cardigan
PLANS for a proposed flood wall that would reduce tidal flood risk to around 90 homes and businesses in Cardigan has been unveiled as the Cardigan Tidal Flood Scheme reaches its latest milestone.
Natural Resources Wales (NRW) has outlined the indicative placement for the wall, which would reduce tidal flood risk to the Strand area of the town. The wall would be located between the Gloster Row car park and the river, following the existing river wall as closely as possible until it reaches the bathroom centre. From there, the alignment would extend slightly into the river channel before returning to the existing river boundary under Cardigan Castle, finishing at Cardigan Bridge.
NRW is exploring the possibility of creating a new public area behind the flood wall close to Cardigan Bridge and in front of Cardigan Castle, offering both reduced flood risk and community enhancements.
Chris Pratt, Project Manager for NRW, acknowledged the concerns residents have around increasing flood risk in the area:
“We understand how anxious people living in the Strand area are to have a tidal flood defence in place that will reduce risk to their homes. We are working on plans to build a defence that will offer a high level of flood protection and takes into account predicted rising sea levels.
“We are also looking at ways to provide community benefits where possible, so this scheme doesn’t just reduce the risk of flooding to homes and businesses, but also supports the local area in other ways.”
NRW is aiming to keep the slipway adjacent to Gloster Row car park, which would likely include flood gates at the top. Additionally, discussions with the local Sea Scouts and other businesses are ongoing to ensure access to the river is maintained.
The proposed wall’s alignment follows consultation with the community, held in late 2022. Feedback from these sessions has been carefully considered alongside existing constraints, including the historic impact, technical challenges, and environmental factors.
With the outline design complete, NRW is now entering the detailed design phase, which will determine final construction details, materials, and the flood wall’s ability to withstand future climate change. This phase will also explore further community and environmental improvements to accompany the core flood protection work. The continued funding for the scheme has been provided by the Welsh Government.
NRW will continue to engage with the community as the project moves forward, ensuring the scheme offers vital flood defences while also enhancing Cardigan for future generations.
With 1 in 7 homes and businesses in Wales at risk of flooding, and with the climate emergency bringing more extreme weather, it is more important than ever that people know and understand their flood risk.
Ahead of the winter period, NRW is encouraging people who live in areas at risk of flooding, but who have not experienced flooding before, to take three simple steps to help protect their home, possessions and family from the devastating effect of flooding in the future:
check your flood risk by postcode online on NRW’s website
sign up for free flood warnings from rivers and the sea in Welsh or English
be prepared when flooding is forecast
A digital newsletter for residents and other people who are interested in the scheme has been launched. People can sign up for the newsletter by using this link: https://bit.ly/CTFSNewsletter .
News
Trust in politics ‘perilously low’ after donations scandal
CAMPAIGNERS called for greater openness, warning trust in politics is perilously low following controversy surrounding donations to the former first minister’s leadership bid.
Transparency International, a nonprofit organisation aimed at combating corruption, told Wales’ public accounts committee that polls show most people think politicians are “out for themselves”.
The charity raised concerns about donations to Vaughan Gething’s campaign, transparency on informal WhatsApp use during the pandemic, and leaks to the press.
Mr Gething declared the £200,000, from a convicted polluter, in line with rules on donations.
In evidence to the committee, Transparency International said: “Recent events in Wales … have brought into question the adequacy of current checks to protect integrity in high office.
“Presently, the first minister of the day produces a code of conduct outlining the standards expected of their colleagues, which they alone have the ability to enforce.”
Mark Isherwood, who chairs the committee, raised concerns about the Welsh Government refusing to publish its “cabinet handbook” in response to a request from Nation.Cymru.
Unlike the UK Government’s public cabinet manual, which sets out rules for the operation of government, the Welsh Government’s equivalent document remains a guarded secret.
Andrew Goodall, the Welsh Government’s permanent secretary, told the October 2 meeting that the two documents serve different purposes despite similarity in the labels.
Dr Goodall said the handbook collates internal-facing support for Welsh ministers and includes details of security arrangements which would not be appropriate to publish.
Wales’ most senior civil servant argued the UK manual was designed to be outward facing.
Dr Goodall explained the Welsh Government will produce a version of its handbook that is suitable to put into the public domain by the end of the year.
The former NHS Wales boss said: “I would like to be open – certainly with the committee – about areas or topics that we have chosen to exclude.”
Mr Isherwood replied: “Non-disclosure generates concerns that may not be merited and I’d suggest it’s in everyone’s interests for this to be fully in the public domain provided it doesn’t create risks for individuals in terms of security, for example.”
In his response to the committee’s consultation, Pedr ap Llwyd, the former chief executive of the National Library of Wales, stressed the importance of government transparency.
He wrote: “A balance must be struck between confidentiality on sensitive government matters and the public’s right to know how government operations are managed.”
Prof ap Llwyd urged the Welsh Government to do more to assure the public that robust mechanisms are in place to handle leaks fairly and thoroughly.
Dr Goodall said Wales follows unauthorised disclosure guidance overseen by the UK Government, “so we’re unable to release that information ourselves into the public”.
Pressed about the ministerial code, which sets standards for ministers, he said it is up to the first minister to decide how complaints are handled or ask for an independent adviser.
In its evidence, the Institute for Government joined Transparency International in calling for the code to be put in law to bring it in line with rules for the conduct of civil servants.
The independent think tank argued this would reaffirm the principle that ministers are as accountable for their behaviour as those who serve them.
Helen Foster, of the department of accounting, finance and economics at Ulster University’s business school, warned of a weakness in the ministerial code.
Dr Foster said the decision to instigate an investigation remains with the first minister, calling for legislative change to rectify the “defect” that limits accountability.
Labour’s Mike Hedges warned the system does not work, saying: “I know at least one former minister who feels really aggrieved with the actions of certain civil servants.”
The Tories’ Natasha Asghar asked whether David Richards, director of propriety and ethics, was acting as an independent adviser when investigating Dawn Bowden, then-arts minister.
Dr Goodall said Mr Richards, who was unable to appear before the committee for personal reasons, was not technically acting as an independent investigator under the code.
He said the first minister has discretion to appoint internally which reflects usual practice.
Ms Asghar pointed out that Mr Gething took advice from the permanent secretary to ensure he was acting within the code when sacking Hannah Blythyn over leak claims she denies.
Ms Asghar said the ministerial code gave no role to the permanent secretary and other officials for investigating breaches before it was changed in 2021.
Pressed about potential conflicts of interest, Dr Goodall reiterated that civil servants are not involved in enforcing the code.
Transparency International and the Institute for Government recommended appointing a standing external adviser, with Dr Foster calling for own-initiative investigations.
Quizzed about the use of informal messaging by ministers, Dr Goodall said all government business should be “translated” to be part of the official record.
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