Cleaning up the Biffa Fund

12.00.00am GMT Wed 9th Dec 2009

Merthyr Tydfil Liberal Democrat Councillors have welcomed the news that the process of handing out £300,000 in 'Biffa' grants to local organisations is to be tightened. The fund will be brought into line with other public grants, with some basic anti-fraud measures to be introduced from next month.

Following a complaint to the Welsh Audit Office by the Liberal Democrat team an investigation has been undertaken by Price Waterhouse Coopers. Their preliminary recommendations are to be included in changes to come before Council at the first meeting next year.

Cllr Amy Kitcher explained "The previous Labour administration didn't put in place any safeguards on the use of this money, and left us with no rules or guidance. Council officials didn't check that the organisation to receive money actually existed, didn't ask what the money was supposed to be used for, and didn't ask for any receipts. The Biffa grants in Merthyr had far fewer checks on it than the old MP's expenses system."

The Liberal Democrat team are suggesting a simple application procedure for Biffa, based on best practice from other Councils, to ensure that the money is spent wisely and properly, and that records are kept so the public can see where the money goes.

Cllr Bob Griffin added "Most Merthyr Councillors, whatever their politics, have handled the Biffa grants responsibly, and have ensured the funds are spent properly despite the lack of support from Council officials. Many of these Councillors have privately expressed their support for our initiative and want to see an open and transparent grant system. Public money must be properly accounted for."

It has taken more than two months for the External Auditors to come up with recommendations. During this time the Director of Finance suspended decisions relating to biffa applications.

The Liberal Democrat Councillors will ask that the Biffa grant scheme is properly publicised on the Council web site and in 'Contact' magazine with the new application procedures, as soon as Council have agreed to the changes required by the Auditors.