THE demise of Swansea-based construction company Dawnus (Welsh for talented) will be discussed by members of the Audit Committee tomorrow (Thursday – May 9).
Committee vice-chairman and lay member John Brautigam has put together a report that looks at the time line of the firm’s problems.
He also looks at the role played by the Welsh Government played in trying to help them. Dawnus went into receivership in March.
In Powys, Dawnus had been given the contracts for three school building projects.
They are a 360-pupil English-medium primary school in Welshpool which is partly built.
It had been expected that the staff and pupils would move there for the new school year in September.
Dawnus had also been given the work of converting the Grade II listed Maesydre school building into a 150-pupil Welsh-medium primary school also in Welshpool.
And a new school building for the all through four to 18 school Ysgol Bro Hyddgen in Machynlleth have been affected.
These last two projects are still at the planning stage.
The report states that The Welsh Government provided a £3.5 million support package.
The report also indicated that The Welsh Government justified keeping Dawnus’ struggles quiet as: “Any release of information to client based organisations may negatively influence their decision making process when the company is tendering for potential new work.”
The risk identified was suppliers or sub-contractors would ask for payment up-front putting pressure on Dawnus’ cash-flow.
“This is what led to their collapse.”
Mr Brautigam added: “I’ve checked with the clerk to the National Assembly Public Accounts Committee and they’ve advised that the chair of PAC (Nick Ramsey AM, Conservative Monmouth) will be writing to the Welsh Government for further information on the support provided to Dawnus as part of its work considering Welsh Government Business finance.”
PCC has now put the contract to finish building Welshpool Church in Wales School on Salop Road out to tender.
Details of the contract can be found on the national procurement website, Sell2Wales with the deadline for tenders being, Thursday, May 9.
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