Derry City Council accused of not delivering promised £10m

The group that runs Londonderry's City of Culture year has accused Derry City Council of failing to deliver on a £10m promise for the celebrations.

It is understood that the Culture Company claims the council had pledged £14m but will have only paid just over £4m.

The company reckons it received £3.7m and £500,000 for marketing rather than the £14m pledged in the bid document.

Derry City Council has so far declined to comment.

It is understood the Culture Company may have made the decision to wind up three months earlier than expected because it felt it had been left with no other option by the council.

The company will be wound up at the end of March 2014 instead of the end of June.

Three members of the board of the Culture Company resigned earlier this month.

Ana Leddy, former head of RTÉ radio, said she resigned to "challenge" plans to wind up the Culture Company early.

She said she was concerned that this could affect the City of Culture legacy.

In a letter explaining her resignation, she said: "At a time when the legacy of the City of Culture year needs to be copper-fastened to ensure the social and economic transformation of Derry, the company is to be wound up early and the staff made redundant."

Two other board members resigned earlier in October.

Speaking on BBC Radio Foyle on Monday, chief executive of the Culture Company, Shona McCarthy, said she was not consulted about the decision to wind the company up early. However, this was disputed by Derry City Council chief executive Sharon O'Connor who said the Culture Company board had been aware of the decision.

Chair of the Culture Company board Martin Bradley, said: "It is inappropriate to have this conversation through the media.

"There is a formal consultation process in place with staff which is where any relevant questions can be answered."