Welsh Poverty And ‘Welsh’ Labour’s Third Sector Money Pit

A report just produced by the ‘Welsh’ Labour Government, Inquiry into Poverty in Wales: Poverty and Inequality tells us, among other things, that 23% of the population still lives in relative poverty, and while the situation is improving in England and Scotland there is no sign of improvement in Wales. In response, the ‘Welsh’ Government protests that it has “committed £323m to tackling poverty this year alone”. I shall return to this ‘commitment’ anon.

This latest report merely reinforces other reports, and evidence from a host of sources, telling us that our land is poor and becoming – relative to Scotland and England – poorer. For example, earlier this year the Wales TUC produced a report on the Living Wage, with its findings published on a constituency basis. It found that in Cardiff North just 11.4% of jobs pay less than the Living Wage, but in Gower the figure rises to 45%, while Dwyfor Meirionnydd gives the worst figure, at 51%. In both of these areas tourism undoubtedly plays a role in depressing wage levels.

The statistics already dealt with tie in with other findings that tell us Wales has the lowest levels of working-age employment and the highest rates of economic inactivity to be found on this island. But what can you expect? In my previous post I dealt with a non-working, benefit-dependent population being deliberately brought in to Dyffryn Teifi – and the same thing is happening all over Wales. Housing associations and others are importing from England white trash that England is more than happy to be rid of. While in the post before that I dealt with the unsustainable numbers of elderly people moving into Wales, and the inevitable effect this is having on the NHS and other services.

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Another piece that caught my eye today concerned Rhondda Life Ltd. Plaid Cymru – for once doing something right – finally got hold of a report from December 2012 that the party claimed the ‘Welsh’ Government had refused to release. (Though much of the information was already in the public domain by 2012, soon after the funding plug was pulled.) The report made it clear that RLL was yet another disaster of the kind we have become so familiar with in Wales: Labour Party hacks and hangers-on receiving obscene amounts of public money for doomed projects in desperate efforts to be seen to be doing something, and failing miserably to achieve anything other than secure tidy salaries and good pensions for themselves.

Running the Rhondda Life show in Ferndale was Travers Merrill. An optimist, our Travers, for while RLL was hurtling, out of control towards the buffers he reassured passengers that it was merely keeping to schedule. For just three months before an auditors’ financial review found Travers Merrillliabilities of £106,555 Merrill was insisting, “RLL is solvent for the following reasons. It has detailed cash flow forecasts; robust internal accounting procedures; detailed financial records; budgetary and corporate plans; no continuing loss-making activities; excess assets over liabilities; no loan or interest defaults on payments; rigid and regular financial activity monitoring; no unpaid tax liabilities; strong governance and management.” Nice try, Trav.

Travers Merrill is married to Rose Mutale Nyoni Merrill OBE (or combinations thereof) who is CEO of BAWSO, a well-funded Third Sector outfit catering for Mrs Merrill and her friends ethnic minority women in need of help. In addition, she was involved with MEWN, another ethnic minority women’s charity based in Swansea, which has also breathed its last. Though before it took ill and expired I – impetuous fool that I am! – suggested that MEWN might reasonably be viewed as a replacement for AWEMA – as if anyone could replace Naz Malik! How much Argie plonk had I drunk when I wrote that?!

Mr and Mrs Travers Merrill are known to have strong – if almost covert – Labour connections, but what is perhaps more interesting about them is that they also have a private company. This is ABESU, which, to quote the company’s website, is “a UK charity working in partnership with the ABESU Women’s Housing Co-operative in Zambia to self-build houses and establish sustainable livelihoods”. Zambia is of course Mrs Merrill’s homeland. The latest accounts lodged with the Charity Commission, or rather, the ‘Unaudited Financial Statements’, tell us that the charity “employs no staff in the UK and the administration is provided pro bono (by whom?) with minimal office expenses”. Which is one way of putting it.

Though a few years ago I was approached by a BAWSO insider telling me that much of ABESU’s administrative and secretarial work was being done in the BAWSO office, using equipment and facilities provided for BAWSO out of public funds. Clearly not right. Though of course this explains why ABESU’s “administration is provided pro bono with minimal office expenses” – it’s because it’s provided by us, via the ‘Welsh’ Government and its funding agencies.

AWEMA Charity Commission
Click to Enlarge

But ‘Welsh’ Labour’s generosity doesn’t end there. For the Unaudited Financial Statement for the period ending March 31st 2014 tells us that the ‘Welsh’ Government gave ABESU £2,000 in that year. (Page 12 of accounts.) Confronting us with the obvious question, why is the ‘Welsh’ Government giving £2,000 to an organisation that, by its own admission. employs no staff in the UK? This has echoes of AWEMA operating, with Welsh public funding, in Kenya and Pakistan. And me, cynic that I am, I can’t help wondering – as I do with all charities – how much of the money donated ever reaches those it was given to help.

Whatever the answer, and however you look at it, the Merrills are the perfect Labour-Third Sector family; neither of them Welsh but happily spending millions of pounds of Welsh public funding on others, most of whom are not Welsh either. And with the curious and suspect overlap with a private company that may also be benefiting from our generosity. Well, we know it’s getting at least £2,000. And for those tempted to say, ‘Oh, two thousand pounds isn’t a lot’, how many other organisations are receiving Welsh public funding for projects outside of Wales?

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Wales is a poor, post-industrial country that has never replaced the heavy industry it lost. With the inevitable result that ours is now a country with unacceptable levels of poverty, suffering a flight of the bright and an ageing population. Yet the ‘Welsh’ Government funds housing associations and others to import more poverty, while also encouraging elderly people to move to Wales! Then, due to the emasculating Left-Green mindset that has reduced Plaid Cymru to an object of ridicule, the party that should be exposing and attacking this truly wondrous strategy that both colonises and impoverishes Wales, actually applauds it! Believing, in its pathetic, socialistic distortions of reality, that Wales is somehow acting as a ‘beacon’ in ‘helping those in need’ . . . bring on the fairies!

And if that wasn’t bad enough, the money that is given to the ‘Welsh’ Government by the EU and the UK government to alleviate that deprivation is wasted on a Third Sector that is nothing more than the Labour Party funding careers for its otherwise unemployable supporters, and guaranteeing their loyalty; supporters who will then shout down opponents and commission surveys that always conclude – the ‘Welsh’ Government should give them more money! This is where the £323 million pounds will be spent this year, not on “tackling poverty” as the ‘Welsh’ Government claims, but on its Third Sector cronies, and on projects and schemes that no Welsh community would miss if they ceased tomorrow.

As I was finishing off this piece, and thinking it couldn’t get any worse, I noticed a tweet from @johnsouthwales telling of a ‘community embankment‘ built in Ammanford as part of the Communities First programme. Tell me this is not real. Tell me I’ll wake up tomorrow and realise that this country I think I live in is really just a bad dream.

Naz Malik and Awema: The Real Charges

On August 28th at Swansea Crown Court Naz Malik, former CEO of race industry charity Awema, was found not guilty on two charges of fraudulently paying the charity’s cheques into his own account. A third charge, that he used Awema money to pay a life insurance policy, was not proceeded with.

Naz MalikThe real issue never was that Naz Malik might have had his hand in the till, consequently this misguided prosecution was, at best, a distraction, with the danger that Malik’s acquittal will be interpreted as a vindication of Awema and the system that has created so many Awemas. This would be both wrong and dangerous.

I first encountered Naz Malik back in the late 1990s before his ambitions went national. He was then running the Swansea Bay Racial Equality Council. I was struck by the fact that he regularly came out with silly statements that had little to do with racism and everything to do with politics. Specifically, he would suggest that Welsh nationalism – and presumably Plaid Cymru – was inherently racist. A little checking soon revealed that Malik was a Labour Party stalwart, and even hoped to be a candidate at either Assembly or Westminster level, as did his children. Leading me to believe there was a quid pro quo arrangement that saw the local authorities on the Bay (Swansea, Neath Port Talbot) fund Malik in return for him putting the boot into them wicked nashies.

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As regular readers will know, I have, for many years, been a consistent critic of Malik, Awema and the system that gave birth to Awema. Unfortunately my pre-2010 posts are now lost due to Google pulling the plug on my old blog for no good reason. (So avoid Google Blogger unless you want the same fate to befall you!) Even so, I have enough information to ask the following questions.

  • After warnings in 2003 and 2007 that things were not right at Awema, why did the ‘Welsh’ Government continue funding the organisation? (In fact, there were 19 warnings from the Wales Audit Office!)
  • What justified Malik increasing his daughter Tegwen’s annual salary from £20,000 to £50,000 in the space of three years? Or rather, why did those funding Awema not ask this question at the time?
  • Did Naz Malik ever have the authority to unilaterally increase his own salary and benefits package?Awema Kenya
  • Why did no one in the ‘Welsh’ Government think it strange that they were funding a ‘Welsh’ charity that, on the Charity Commission website, claimed to also be operating in Kenya and Pakistan, using EU funding allocated to be spent within Wales?
  • Given the known problems with the Malik family’s running of Awema was it wise for Labour to have Naz Malik’s son, Gwion Iqbal Malik, as a candidate in the May 2011 Assembly elections, and for First Minister Carwyn Jones to be seen canvassing with him? (Surely this should have been vetoed?)
  • Why did no one wonder what the link might have been between Awema and Malik’s sister Fahro’s (now defunct) charity Lynk Reach Ltd? Or whether that connection was right and proper? (I’m told she was born in the same city, Nairobi, and in the same month, as Peter Hain. Funny old world!)

Well over seven million pounds of largely EU funding was squandered on Awema. As part of a wider system of Labour Party patronage that then enables local clients beholden to the party, like Naz Malik, to oversee their own systems of self-enrichment, patronage and nepotism. A veritable pyramid of corruption. So lucrative is this racket that once it became clear late in 2012 that Awema’s days were numbered a replacement sprang up, just a few streets away, in the form of Race Council Cymru.

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I’m afraid my home town is getting a bad reputation for third sector corruption. In June this year I Mo Sykeshad to report on the charity MEWN. In more recent posts, The Impoverishment of Wales and Ancestral Turf, I have dealt with another Swansea-based charity, YMCA Wales. There had been rumours for a few years that this was a disaster waiting to happen. In fact, and with my – ahem – customary perceptiveness, I wrote about YMCA Wales in July last year in YMCA ‘Wales’: Another Trojan Horse At The Trough.

YMCA Cymru’s chief executive, Mo Sykes, went missing in July, the trustees placed the organisation in receivership, while the ‘Welsh’ Government – perhaps hoping to appear decisive for once – called on DePlod to investigate.

Yet the problem isn’t with Swansea, the fault lies with a system that if it’s not designed to attract peripatetic third sector parasites will inevitably have that effect. For the word will quickly spread in their magazines, on their websites, and through the channels of the Guardian readers’ very own freemasonry, Common Purpose, that Wales is a soft touch, money is being showered on any shyster who can deliver a persuasive spiel.

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In the dock at Swansea Crown Court should have been ‘Welsh’ Labour, not its creature, Naz Malik. It should have been charged with squandering EU and other funding on professional grant-grabbers in order to buy support, while turning a blind eye to how that funding was used, and abused, lower down the food chain. Also in the dock – for this system could never have flourished without it – should have been the self-styled Welsh media, fearful of upsetting the Labour Party and, as a result of that cowardice, betraying the Welsh people.

The real worry is that Wales now has a system that blatantly mis-uses grant aid to fund political patronage, and that this inevitably leads to nepotism, self-enrichment, corruption of all sorts – and yet no one seems to care! This is the real problem with the third sector in Wales. In fact, this sums up the third sector in Wales. And we shall all suffer while this pernicious system endures.