The Wales Audit Office has said the Welsh government has to change its grant management processes following a report which finds it was ‘often weak’ in its management of funding to defunct equality charity Awema.

Awema, which received around £7m in funding from the Welsh government, closed earlier this year after a catalogue of financial and governance irregularities were uncovered.

The Wales Audit Office has today released a report into the relationship between the Welsh government and Awema since 1999.

Commenting on the report, assistant auditor-general, Anthony Barrett, said:

“The Welsh government's management and coordination of its grant funding to Awema was often weak and its responses to historical concerns about Awema were too narrowly focused. By contrast, the Welsh government responded robustly to the concerns that emerged about Awema in December 2011, but dealing with the consequences has been time-consuming.

“While the outcome of the liquidation process is not yet known, it is clear that the Welsh government will not recover most of the £545,966 debt it now believes it is owed by Awema, as this far exceeds the amounts available to reimburse creditors.”

The Welsh government’s payment to Awema totalled £7.15m, with a future £3.01m having been committed in principle before the Welsh government announced the termination of its funding in February.

Speaking to Good Morning Wales, Barrett said the Welsh government needed to change its approach to grant management and said it needed a more joined-up approach with other departments.

Since its closure, Awema's FD has won £4,010 in compensation for unfair dismissal, and another employee has successfuly won a sexual harassment case against the charity's CEO. 

The Charity Commisssion is due to issue a report into Awema.