Welsh equality charity Awema has dismissed with immediate effect chief executive officer Naz Malik and finance director Saquib Zia.

Last week the charity announced it was to close after losing its government funding, following the Welsh Government Internal Audit Services’ report and the Welsh finance minister’s written statement of 9 February.

Awema says it will now appoint an insolvency practitioner as its administrator to take over control of the charity’s business and assets from its trustees and to close the business entirely.

Rita Austin, Awema chair, said in a statement: “The Awema board would like to thank its staff for the dedicated service they have provided to several hundred participants registered with European funded Awema-managed projects in Swansea and surrounding local authority areas, and in North Wales, especially in these last difficult weeks. Staff members are in active contact with participants and will do their best to ensure that support services to them continue through other means.

“The Awema board wishes to acknowledge the gravity of the matters brought to public attention in the WG Internal Audit Services report. Clearly there have been serious failings in the effectiveness of governance and financial management within Awema upon which the Welsh government has acted, and upon which, in consequence, the Awema board now act, with all due speed, one week later.”

Awema, which received £8.4m in public funding, first courted controversy last November, when allegations of financial irregularity were made against CEO Malik. Six trustees, including the vice-chair, then resigned in protest, before the funds were finally severed.