'Gaps' in Welsh Government's £167.5m job creation records

The failure of Kancoat steel, which cost £5m, was one of the projects that prompted the wider review

A report into the Welsh Government's spending of £167.5m on businesses said the economy department's records contained "gaps and errors".

The department could not easily provide the Wales Audit Office with full and accurate information of its spending on creating and safeguarding jobs.

This "hindered" the review into the impact of this spending between 2014 and 2017.

The Welsh Government said it was always looking for ways to improve.

The Wales Audit Office review was prompted by high-profile failures of businesses that had received money from the economy department, including Kancoat and Griffin Place Communications.

Non-repayable

Between 2014 and 2017, financial support created 9,171 jobs and safeguarded 9,140.

But these figures were approximate because they were calculated manually and possibly included job figures from other funding programmes, the report found.

It said management information about financial support was held on different systems and contained "gaps and errors".

In the sectors and business team, an internal audit last year also found errors in records.

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The expenditure on creating and safeguarding jobs over the three years totalled £167m.

The overall amount given to businesses over the same period amounted to £349m, but not all of this was in the scope of the review. During this time most of the finance provided to business was provided on a "non-repayable" basis.

Most of the projects supported achieved their objectives. The 17 projects that did not meet their goals had received £8.8m in total, and about half of this was recovered by the Welsh Government. Almost all the money given to businesses that subsequently failed - £7.8m - was not recovered.

Other findings of the report were:

• The Welsh Government needed to demonstrate more clearly what the financial support had achieved. A more coordinated approach for managing financial support for business was recommended.

• There has been a lack of clarity for business in what Welsh Government financial support is available and how they can access it.

• The department's sectors and business team had, however, improved some aspects of its financial management of individual projects.

'Comprehensive support'

A Welsh Government spokeswoman said they were proud of the "comprehensive" support they provide to business.

"It is pleasing that the Auditor General for Wales recognises the important changes to our approach to providing financial support to business through a new strategic approach and operating model," she added.

"We will consider the findings of the report with interest."