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Mismanagement of public accounts ‘has cost the people of Wales millions’

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SIGNIFICANT funds for essential public services have been lost due to shortcomings in the Welsh Government’s accounting, according to a Senedd Committee.

A report published today by the Senedd’s Public Accounts and Public Administration Committee (PAPAC) has raised a number of issues with the accounts for 2020/2021.

  • £155.5 million was lost to Wales due to poor account management
  • Serious concerns about record keeping relating to £80,000 payment made to the former Permanent Secretary
  • The current Permanent Secretary’s salary exceeds the advertised amount
  • Concerns about the level of fraud and error in the COVID-19 business grants scheme

Welsh Government £155.5 million underspend

Today’s report notes the Committee’s disappointment that significant funding was lost to Wales as a result of the Welsh Government’s underspend in 2020-21.

A total of £155.5 million could have been utilised to fund essential public services in Wales – at a time when there are serious pressures on public funding.

This figure is the result of the difference between the balance of the Wales Reserve on 1 April 2021 – £505.5 million – and the Wales Reserve’s limit of £350 million. The Welsh Government said the Chief Secretary to the Treasury had rejected its request to carry forward funds in excess of the Wales Reserve limit.

It is equivalent to around two-thirds of the revenue raised from putting 1p on each of the Welsh rates of income tax.

The Committee found it difficult to understand why the Welsh Government waited so long to be told it could not do as it wished with the underspend, and why such a request was made retrospectively. The Welsh Government appears to have assumed, based on previous HM Treasury decisions, that it would be granted flexibility to use the funding.

It raises questions as to whether making a request sooner may have enabled the funds to be used. The Committee said lessons must be learnt to ensure such vital funding is not lost from Wales again.

Chair of the PAPAC, Mark Isherwood MS, said: “Our report highlights a number of serious issues within the Welsh Government’s Consolidated Accounts 2020-21, which was not only significantly delayed and signed nine months later than the timetable originally agreed, but qualified by the Auditor General on three separate issues.

“We are very concerned that significant funding was lost to Wales as a result of the underspend in 2020-21. This money could have been used to fund essential services and it is especially frustrating now when there are such pressures on public funding.

“It is one of many examples where poor record keeping and mismanagement of public accounts has cost the people of Wales.”

Arrangements surrounding current and former Permanent Secretaries

A payment made to the former Permanent Secretary, and arrangements around the current Permanent Secretary’s salary, raise a number of issues regarding the documentation of decision making and record keeping by the Welsh Government.

A payment of £80,519 was made to the former Permanent Secretary on her departure.  This included £31,843 as payment in lieu of notice, £9,553 in unused annual leave and an extra-contractual payment of £39,123.

The Committee is concerned that deficient record-keeping about how important decisions were taken resulted in a lack of clarity and insufficient opportunity for this Committee to scrutinise this payment, and that Welsh Government did not provide the Auditor General with sufficient contemporaneous evidence to establish the change in the former Permanent Secretary’s working arrangements and to justify the payment made on her departure.

The report also details concerns about the process of appointing the current Permanent Secretary. In September 2021, the Welsh Government announced the appointment of Dr Andrew Goodall, who had since 2014 been seconded to the Welsh Government from the Aneurin Bevan University Health Board (ABUHB).

The post had been advertised with a salary between £162,500 and £180,000, but Dr Goodall confirmed after his appointment that he remained on the NHS chief executive pay framework – meaning his current salary exceeds the advertised salary.

This raises the question of whether the Welsh Government may have attracted different candidates had the post been advertised at a higher pay scale.

The report recommends that the Welsh Government review its reporting and record-keeping practices to ensure that internal decisions around the Permanent Secretary role, along with any other roles at Director General level or above, are clearly documented.

The 17 recommendations made in the report aims to tackle the poor recording keeping which came to light during the Committee’s inquiry.

 

Crime

Man accused of Currys theft spree linked to Haverfordwest store

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Defendant remanded in custody as court hears allegations spanning Wales and South West England

A MAN accused of carrying out a series of high-value thefts from Currys stores across Wales and South West England has appeared before magistrates in connection with an alleged offence in Haverfordwest.

Ilia Patchkoria, aged 27, of no fixed abode, appeared before Llanelli Magistrates’ Court facing multiple theft allegations involving electrical goods worth tens of thousands of pounds.

Among the charges is an allegation that Patchkoria stole items worth £1,525 from the Currys store in Haverfordwest on May 23 this year.

The court heard that the Haverfordwest incident forms part of a wider series of alleged offences said to have taken place at Currys stores across Wales and England.

Other charges relate to alleged thefts at stores in Carmarthen, Barnstaple, Plymouth, Truro, Penzance and Torquay. The total value of the goods involved in the various allegations runs into many thousands of pounds.

According to the court register, the largest single alleged theft took place at the Carmarthen branch, where goods valued at more than £7,600 are said to have been taken.

Patchkoria indicated guilty pleas to some matters before the court. Magistrates ordered that he be remanded in custody while proceedings continue.

The case has been adjourned until July 2, when it is due to return before Llanelli Magistrates’ Court.

It is not yet known precisely what items were allegedly taken from the Haverfordwest store, although Currys outlets typically stock a range of high-value electrical goods including laptops, mobile phones, gaming consoles and household technology.

No verdicts have been reached in relation to the outstanding allegations.

The Herald has approached Currys for comment on the alleged Haverfordwest theft and to establish whether the incident caused any disruption to customers or store operations.

Photo caption: Currys in Haverfordwest was among several stores allegedly targeted in a cross-country theft spree (Pic: Herald).

 

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Tragic tribute paid to Haverfordwest man after A4075 collision

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FAMILY REMEMBERS “KIND AND LOVING” CALLUM HANSON

THE FAMILY of a 22-year-old man from Haverfordwest who died following a road traffic collision have paid tribute to their “kind and loving” son, brother and grandson.

Callum Hanson sadly passed away in hospital on Wednesday (Jun 17) after a collision on the A4075 near Cross Hands, Pembrokeshire.

In a tribute released through Dyfed-Powys Police, his family said Callum lived life to the fullest despite his own personal challenges.

They said he was a deeply caring person who had spent the last month looking after his grandad, who also recently passed away.

Callum had a passion for gaming and motorbikes, and was training to become a mechanic at college.

He will be remembered by his mum Joanne, dad Carl, sister Kacey, nan Heather, girlfriend Emily, and his wider family and friends.

The family have asked for privacy at this difficult time.

Police are continuing to appeal for witnesses. Officers want to hear from anyone who was travelling on the A4075 between Canaston Bridge and Yerbeston at around 6:15pm on Wednesday (Jun 17).

Anyone with information can contact Dyfed-Powys Police online, by emailing [email protected], or by calling 101, quoting reference 362 of June 17.

 

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Business

Business insolvencies fall but Welsh firms still under pressure

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INSOLVENCY figures fell in May, but businesses across Wales remain under serious financial pressure, according to restructuring specialists.

Official figures show there were 1,868 corporate insolvencies in May 2026, down 10.5% from April and 16.3% lower than in May last year.

Andy McGill, restructuring and insolvency partner at Azets, which has offices in Cardiff, Swansea and St Asaph, said the fall was welcome but should not be mistaken for a sign that firms are out of difficulty.

He said: “Directors running out of fight, firepower and finance is still a problem, and creditors remain willing to turn to the courts to recover monies owed — and neither of these are going to change in the short term.

“The reality is that despite the fall in insolvencies compared to last month and last May, numbers are still high and businesses are still struggling, with many facing an uncertain future.”

Mr McGill said firms were being hit by a combination of geopolitical uncertainty, rising costs, political instability, a lack of affordable finance and creditors chasing overdue debts.

He added: “Unless the climate becomes easier and some way is found of lightening the cost load on businesses, it’s likely demand for advice and support will remain high in the coming weeks and months.”

Cost pressures continue

BUSINESSES are also facing rising employment costs, higher business rates and renewed pressure from energy bills.

Mr McGill said many firms were being “sandwiched” between their own higher costs and customers cutting back on spending.

He said the hospitality, retail and construction sectors remained among the hardest hit.

He added: “The fact that several household names have entered restructuring or insolvency processes recently shows the strain on the restaurant sector is becoming unbearable as the double blow of increased expenses and cautious consumers continues to affect it.

“Despite a rise in footfall and sales, retailers continue to be crushed by costs.”

He also pointed to the planned restructuring of TG Jones as evidence that even long-established high street names were not immune from financial distress.

Construction firms under strain

THE construction industry continues to face pressure from rising labour costs, higher material prices and late payment.

Mr McGill said tight margins and cashflow difficulties were pushing more firms towards financial distress.

He said: “Our advice to anyone who is worried about their business is to pick up the phone and speak to an adviser.

“It’s incredibly hard to voice your concerns about your finances, but the earlier you do, the more potential solutions you have open to you and the more time you have to consider how you move forward.”

 

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