Awema: Report due into under-fire race equality charity

Finance Minister Jane Hutt will release a report into Awema on Thursday

The future of a prominent charity for ethnic minority people hangs in the balance as ministers prepare to publish a report into alleged financial malpractice.

It has emerged a chairman of the All Wales Ethnic Minority Association (Awema) resigned after complaining to the Welsh government in 2007.

It came three years after a critical report into the charity.

The Welsh government is due to make a statement on Thursday.

Ministers have been under pressure from opponents over public funding paid to the charity.

BBC Wales has seen correspondence showing the Welsh government was in discussion with Awema after allegations were made about the way it was run in July 2007.

The chairman at the time, PK Verma, wrote to a Welsh government official complaining about Awema boss Naz Malik and alleging an attempt to organise a meeting of the charity's board had been blocked.

Mr Malik has declined to comment, but released further correspondence to Western Mail, including a letter from the government official to Awema in November 2007 which states: "I now have the board's reassurances and the requested information and I see no further issue."

An earlier report in 2004 said no new projects should be funded until it demonstrated improved management.

Finance Minister Jane Hutt will release the findings of the latest probe into Awema, and a written statement to Welsh assembly members, on Thursday.

A report commissioned by the charity's trustees last year recommended Mr Malik be suspended. He also faces allegations of bullying staff.

He has declined to comment until investigations are concluded.

Facing Assembly Members' questions on Wednesday, Ms Hutt said Thursday's statement "will set out the approach that will be taken to review the history of funding for Awema".

First Minister Carwyn Jones has said the government has "nothing to hide" about Awema.

He told AMs on Tuesday it was not clear whether the 2004 report had been published.

A copy of the document was later found by the Liberal Democrats in the members' library of the assembly.

The Welsh government spokesman says its priority is the current inquiry into funding Awema.

Permanent Secretary Dame Gillian Morgan, its top civil servant, is reviewing previous funding to the organisation.

The opposition has also sought assurances from the first minister that the latest inquiry into Mr Malik has not been compromised by his links with the Labour Party.

Labour has accused the Conservatives of trying to "muddy the waters with smear and innuendo".

Awema's chair, Rita Austin, has defended the charity saying media coverage of it was reminiscent of "a time honoured way of debasing and devaluing the contributions of black and minority ethnic people".

Dr Austin has said suspending Mr Malik would have incurred great cost, and that she submitted a serious incident report to the police and Charity Commission before Christmas.

Writing on the charity's website, she said a disciplinary panel into Mr Malik concluded there had been "a completely inappropriate advance of expenses payments, the balance of which the panel instructed had to be repaid the next day".

The matter was regarded as gross misconduct, said Dr Austin. A written warning was placed on Mr Malik's record after he gave an "open and transparent declaration".