Coronavirus: Councillor accused of mishandling Covid-19 business grant

Councillor Ramesh Patel stands accused of mishandling a business grant

A Cardiff councillor is engaged in a row with a dance school boss over a £10,000 coronavirus business grant.

Rubylicious owner Vickie Bennett says it's "morally wrong" landlord Ramesh Patel has not passed the cash to her.

Mr Patel - who works for First Minister Mark Drakeford - says the money will be used to give Ms Bennett a "rent holiday."

He said he would keep "not a penny". But he wants Ms Bennett to apologise first.

The cash went to Mr Patel as he is the registered ratepayer at the property.

Ms Bennett said she and another tenant pay rates and bills through Mr Patel, so should receive the grant.

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But when Ms Bennett tried to access the money from Cardiff Council she was told it had been claimed by Mr Patel.

Ms Bennett feels Mr Patel should then have given the money to her and the other business at the Cardiff property.

She said: "I just feel he's let us all down.

"That money would have been a great help.

"I feel it's morally wrong, it's the decision he's made to take this money when he doesn't have a business that is in jeopardy, he doesn't have a business that is running from this premises that is in jeopardy."

Rubylicious is currently closed because of coronavirus.

Mr Patel, who works as office manager for Cardiff West MP Kevin Brennan and MS Mark Drakeford, "categorically disputes" Ms Bennett's "accusations".

"I am the legally responsible ratepayer of the commercial property and thereby was legally entitled to the grant in the amount of £10,000," he said.

"Even before I received the grant, I provided Ms Bennett with rent relief for three months during this very difficult period.

"After receiving the grant, my intention was to offer 100% of the grant in the form of further rent relief at the end of the three-month period.

"I have instructed my solicitors to write to Ms Bennett asking her to withdraw all false allegations against me and to offer a full apology.

Mr Patel denies the allegations levelled at him by Rubylicious owner Vickie Bennett

"Once Ms Bennett complies with my solicitor's request, I will be able to offer her further rent relief."

Ms Bennett said she won't be "bullied" by Mr Patel and won't apologise for "embarrassing him by telling the truth".

There is no suggestion Mr Patel has done anything illegal.

But BBC Wales has been told there is unhappiness in the local Labour Party at his handling of the situation.

The matter was raised in the Senedd last month by South Wales Central MS Neil McEvoy.

Speaking in the Senedd, he said Mr Patel was "refusing to pass on the £10,000".

Addressing Economy Minister Ken Skates, he said: "I thought maybe I'd ask you to address that and possibly as well have a word with the first minister and ask him if he could ask his member of staff, Councillor Patel, to maybe pass on the £10,000 to Rubylicious in Cardiff West instead of pocketing it."

Finance Minister Rebecca Evans wrote to Mr McEvoy, saying the grants were awarded to a property's registered bill payer.

"Tenants who have entered into agreements with their landlord about the payment of rates would need to contact their landlord if they wish to make changes to the arrangements," she said.

Business analyst and chartered surveyor Chris Sutton said there were "issues" with the scheme.

"But the scheme was very definitely aimed at the occupier at the small business," he said.

Ben Cottam, of the Federation of Small Businesses, said Welsh Government guidance does not "mandate" landlords to pass the grant to tenants but said he would hope landlords "show understanding" towards the needs of small businesses.

The scheme supposed to help firms stay afloat during lockdown

Firms eligible for small business rates relief - those with a rateable value of up to £12,000 - can receive a grant of £10,000.

The way the scheme was set up has been criticised because firms that operate from properties where the landlord handles business rates cannot claim.

There is a similar scheme in England. The UK government has reportedly suggested companies ask landlords to claim the grant and pass it on.

But there is no legal obligation for landlords to do that.