European Regional Development Fund

The title above is shared with a song I remember from my Sea Scout days. I can still smell those jumpers we had to wear. But by God, I looked good! And you should have seen my woggle!

This week’s contribution to help you understand Wales takes us down to Pembrokeshire. And a tip I received from the ever-alert Nicola Lund (@MrsLund1). It’s about a small company that seems to be doing remarkably well. Or maybe it’s folded.

Unless I get distracted and go down too many rabbit holes this should be a quickie.

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G’DAY, MATE

Yes, it’s an Australian company. By the name of Bombora Wave Power Europe Ltd, which has facilities in Pembroke. Here’s the website.

Consulting the Companies House entry we see it’s a one-man band, and that one man is Sam Russell Leighton. Turning to ‘significant control’ tells us ownership rests with Bombora Wave Power Pty Ltd in Australia. The company address given is a PO Box in the northern suburbs of Perth.

If we scroll down to the Certificate of Incorporation we see the UK company was originally named Bombora Europe Ltd, but the address given for Russell was an enterprise centre just south of the Swan River in Perth. The single share issued for the European entity is of course held by the Australian company.

To find out more about the holding company in Oz I went to the Australian equivalent of Companies House. Where I learnt the parent company was registered 04.07.2011.

Here’s the company document I downloaded. You’ll see there are two directors; Sam Leighton and Allyn Murray Wasley, who is still based in Perth. Directors who left the company last year include two Japanese, a Dutchman living in India, and Andrew Clive Buglas of Worcestershire.

Here’s the announcement from 2020 of Buglas becoming a Bombora director.

Confusingly, Buglas’ Linkedin page says he left Bombera in November 2022 but the company document from Australia says he left February 2024. Could be a typo, I suppose. The point is, he’s gone.

Why did so many directors leave Bombora last year?

Turning to the shares, 304,591,633 have been issued. Which is impressive. Though Leighton himself seems to be a minority shareholder. The biggest shareholders would appear to be the family of Glen Lee Ryan, who may have invented the wave power machine Leighton has been working on in Pembroke.

Here’s Ryan telling us about his invention.

Anyway, you can go through the shareholders yourself. You’ll see there’s a Welshpool in Western Australia, and the only shareholder from Wales I could see is Stepan Labounek, a Czech living in Bridgend.

The only other UK address among the shareholders is that for Enzen Ltd in Solihull. Now owned by NXZEN, with just over 73 million Bombora shares. The accounts for Enzen are almost a year overdue with Companies House. As are the accounts for NXZEN Global Ltd.

To cut a long story short, I believe NXZEN is owned, via the Glas Trust Corporation, by global equity firm Levine Leichtman Capital Partners of Beverly Hills. I find this interesting because in July Glas cropped up when I wrote about small companies in Cardiff suddenly hitting the big time in retrofitting homes with expensive equipment to save the planet.

It’s all here in Saving The Planet – The Globalist Way!

And now we see Levine Leichtman cropping up again in connection with a ‘green’ project in Wales. What a remarkable coincidence!

Apropos of nothing, Capital Law is a big firm in Cardiff that works for the self-styled ‘Welsh Government’. And as the website makes clear, Capital Law also works with the ‘Welsh Government’-owned Development Bank of Wales (DBW).

Google AI even tells us:

So I was not entirely surprised to read that Capital Law has also had some involvement with the boys from Beverly Hills.

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MONEY, MONEY, MONEY

Let’s go back to the (UK) Companies House documents for Bombora, and in particular, the finances, or rather, the loans. And Google AI Overview:

Bombora secured a £10.3 million European Regional Development Fund (ERDF) grant, administered through the Welsh Government, to support its Pembrokeshire Demonstration Project for the mWave wave energy converter. This funding is part of a total project investment of £17 million.

So if that’s £10.3m from the ERDF, can we assume that the remainder of the project cost of £17m came from the ‘Welsh Government’ through the DBW? Which would be explained by the five outstanding charges, from 2019, with the DBW?

There was a further arrangement in 2022 with HSBC.

Also the £3.54 million from Mitsui O.S.K. Lines Ltd of Japan. Which would account for the Japanese directors of the Australian parent company. But they left last year, so what does that tell us?

I checked addresses for Bombora, and found the correspondence address given is a residential property in Milford Haven. But the business premises is a rather strange-looking building in Pembroke Dock, which might be owned by the county council.

Clearly, a great deal of money has gone into Bombora. At least £20 million. Was it worth it? Are the wave energy machines Bombora produces viable? Is the company creating employment for locals?

I don’t want to sound overly negative, but I have many questions. And sometimes my doubts can be triggered in the strangest way. Let’s go back to the website to give you an example.

On the homepage, top right, we see the tab ‘News’. I always find this irresistible. So let’s click on it. There’s nothing after August 2022. Before that there were regular entries, but nothing for over three years. Why?

The whole website has a kind of ‘neglected’, not updated, look to it.

Then, in May this year, Companies House was notified that the man behind Bombora, Sam Russell Leighton, had either moved back to Australia, or perhaps had never left.

The most recent accounts show a company in debt to the tune of over £5 million.

It would be a hell of a lot more were it not for ‘Intangible assets’ of over £18.5 million. But ‘intangible’ could be anything, or nothing. I could value my ready wit and beguiling demeanour at £50 million. (And they’d be undervalued!)

It makes me fear these wave energy machines may already be at the bottom of Shit Creek rather than heralding a brave new dawn on the Cleddau.

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CONCLUSION

An Australian company turns up in Wales and gets the red carpet treatment.

This sort of thing happens all the time. Just give out some spiel about the environment, green energy, diversity, fascist farmers, misinformation, and some clown in Corruption Bay will respond with, “How much do you need?“.

But there’s no benefit to us from any of it. We’re just expected to feel morally uplifted while we watch out for the bailiffs.

So let’s finish with a mix of questions and observations.

If my fears are unfounded, and Bombora’s wave machines are a huge success, where will the profits go? Answer: back to the shareholders of the parent company in Australia. And of course, Levine Leichtman Capital Partners of Beverly Hills.

If the wave energy machines are a failure, who’s out of pocket? Answer: those who’ve put up money, including the Development Bank of Wales. In other words, you and me.

Which then prompts the question: how much exactly has DBW-‘Welsh Government’ given to Bombora? Similar question for Pembrokeshire County Council.

I’m not the first to wonder this. A Freedom of Information request was sent to the ‘Welsh Government’ about a year ago. Here’s the response. A similar request went to the county council. Here’s the very slippery reply.

I thought that the job of the Development Bank of Wales was to encourage the growth of Welsh businesses. So why did it fund an Australian company?

How odd that I should mention, twice in six months, Glas and owner Levine Leichtman.

How well known to each other are Levine Leichtman, DBW, and Capital Law? Mayhap they co-operated on the Bombora project? Other projects?

How many more foreign companies will be fawned over and funded before politicians, Development Bank of Wales, civil servants and others, realise the only way to achieve a healthy Welsh economy is to encourage indigenous businesses?

Of course, I’m assuming they want Wales to be an economic success. But after 26 years of the disaster that is devolution, I’m no longer sure.

♦ end ♦

It all started with a tweet, last week, someone drawing attention to a post on the Bevan Foundation blog. This post, I think. Doesn’t really matter. As you can probably guess, the Bevan Foundation is not a site I visit regularly but, summoning up my courage (and clutching my crucifix) I ventured deep into this forbidding realm of socialist gobbledygook. Soon forgetting about the post that had drawn me hither as my attention was grabbed by other things I read.

In the ‘About Us’ section, we learn that the Bevan Foundation regards itself as an “independent think tank”, is a “company limited by guarantee” and “registered as a charity in 2004”, then: “We take our name from Aneurin Bevan, founder of the NHS and welfare state. Although he was a Labour politician, Aneurin Bevan is today remembered for his achievements to make society fairer”. Which struck me as an odd way of putting it; for it could be read: ‘Despite being a Labour politician Bevan nevertheless believed in fairness’!

(In contrast to the websites of other organisations the Bevan Foundation’s seems somewhat reluctant to give its company number, 04175018; and its charity number, 1104191. This is how it should be done.)

At the foot of the page I came across these two logos. The blue one I recognised from having used it, or something very similar, myself. It is the logo recipients of European Funding must use on their communications, websites, etc. In Wales, this money is usually doled out by the Welsh Europ ean Funding Office, set up by the ‘Welsh’ Government to disburse EU funding; though when I spoke with WEFO they denied that The Bevan Foundation had received funding from them. The other logo tells us that the Bevan Foundation has received funding from Communities 2.0, a “digital inclusion project” offering “free training and support to small enterprises”.

In what I confess was a rather cheeky attempt to get further information on funding I submitted a FoI request to The Bevan Foundation, knowing in advance it was exempted from this legislation. Even so, I received a polite reply from Victoria Winckler, Director of the Foundation, which read:

“Thank you for your request under the Freedom of Information Act for information about the Bevan Foundation. The Bevan Foundation is not a public body, nor does it receive sufficient public funding for it to be considered as such, and it is therefore not covered by the Act. You will however find information about the Foundation’s income, including our audited accounts, on the Charity Commission’s website.”

According to the panel, taken from its website, The Bevan Foundation “doesn’t get funding from government or any political party”, yet the ‘Welsh’ Government logo linked to the ERDF logo suggests otherwise. And seeing as Labour has been in power since 1999 it rather undermines the claim to be getting no funding from government or any political party. (Getting the funding at one remove doesn’t change anything.) Equally untrue is the claim that The Foundation is an “independent think tank”. It was set up in 2001 by Labour politicians to counter the Institute for Welsh Affairs, which Labour thinks is too ‘Nashie’. It may have been entirely co-incidental that 2001 was also the year the European lucre started rolling into Wales.

Returning to Communities.2, this funding is distributed by another outfit with Labour links, the Wales Co-operative Ce ntre and a few ‘partner’ organisations (one being the in-a-hole-and-still-digging Carmarthenshire County Council). So where does the Co-op get the money from? Well, that’s the ‘Welsh’ Government again. And where does the ‘Welsh’ Government get the money from? Again, from those generous people on the Continent through the European Regional Development Fund. Two logos, same money, same source.

I sent a further e-mail seeking a breakdown of the rather vague ‘Research income’ given in the documents submitted to the Charity Commission (£60,731 for the year ended 2012; £84,976 for the previous year). This elicited another polite response from Ms Winckler saying that the exact amounts were confidential, but the organisations for which the Foundation had worked could be found elsewhere in the report submitted to the Charity Commission. So I looked. (Incidentally, let me make it clear that I responded in kind. This was a brief but very civilised exchange. So there!)

If I have read and understood the report . . . the bodies for which The Bevan Foundation is doing work are, the Wales TUC and the Wales Co-operative Development Centre. Then, in the ‘Restricted Funds’ section, we learn that it received £4,875 from the ‘Welsh’ Government’s New Ideas Fund, and a further £4,015 from the ‘Welsh’ Government for an ‘Equality Festival’ held in Ebbw Vale in February 2011. (I never got an invite!) Finally, the report also tells us that in 2012/13 the Foundation will be “employing a research office” (sic) thanks to the generosity of (Labour-controlled) Blaenau Gwent County Borough Council. Oh, and the Communities 2.0 grant I mentioned earlier, well, that amounted to a “£4,665.40 package of support by Communities 2.0 to network their computers to a central data storage facility, update their website and for google analytics training. Additionally The Bevan Foundation received 28.5hrs of ICT support and consultancy assistance”. A detailed FoI has also been submitted to the ‘Welsh’ Government asking how much money, and by what routes, has been channelled to The Bevan Foundation, but I ain’t holding my breath on that one. So what have we got? Here’s how I see it.

As the name suggests, The Bevan Foundation is an adjunct to the Labour Party. As such it should not be receiving funding from the Labour Party, the ‘Welsh’ Government, local authorities controlled by Labour, or third parties funded by the ‘Welsh’ Government.

The EU has given Wales money in the expectation that we would use it to drag ourselves out of the spiral of economic and social decline we have suffered for over thirty years. Yet after twelve years of such funding those areas that voted for devolution in 1997, the same areas that qualify for the highest level of EU funding, are poorer now than they were then. This is why . . .

Instead of using the funding to train people in new skills, on infrastructure, and enterprise, the funding is squandered on schemes and projects that are politically correct rather than economically viable, often run by people who were able to smell the funding from a great distance; schemes that create employment only for those running them; schemes that rely solely on EU (and other) funding and are incapable of growth – not least because of duplication – yet a mirage of entrepreneurialism is created by the funding being broken up and re-packaged, passed on to other third sector groups; allowing grant-reliant charities, social enterprises and community groups to be presented as ‘businesses’. And with every scandal it becomes ever clearer that a disproportionate number of those benefitting from this system are Labour Party members and supporters, often using the funding to disseminate Labour Party propaganda, and other information that might be of benefit to the Labour Party.

It truth, the only real achievement of EU funding in Wales has been the underwriting and strengthening of the pre-existing system of Labour Party patronage, cronyism and nepotism. In short, corruption . . . with the added felony of money laundering. What we see today is the party of power, the party holding the purse-strings, rewarding its supporters, as happens in the Third World that Wales will soon join. Though were this happening in Korruptistan then the ‘serious’ publications in London, Newsnight, even, might take an interest . . . but, Wales? nah, who cares?

Jac o' the North

Tag: European Regional Development Fund

Riding Along On The Crest Of A Wave

The Bevan Foundation