£5 million Kancoat loss exposes Welsh Government's "unguarded attitude to risk"
Reports that more than £5 million of public money has been lost in supporting Swansea-based steel firm, Kancoat, has been described as "more than an isolated blip" by Shadow Cabinet Secretary for Economy, Russell George.
Kancoat received £3.4m from the Welsh Government and later went into administration incurring a further £2 million charge to surrender the lease on the building early.
Reacting to the news, the Welsh Conservative Spokesman for the Economy, Mr George said:
“This is one of a long line of failings by Welsh Government to adequately monitor the spending of public money. From Kankoat to the Circuit of Wales, Triumph Furniture and Natural Resources Wales’ timber contracts, it is deeply troubling that the Welsh Government has failed to get a grip on its obligations to the Welsh taxpayer.
"These revelations expose a pattern in the Welsh Government which shows that it is not an isolated blip. We have already seen major failings with decision-making. The Welsh Government's record is littered with expensive errors, miscalculations, poor performance and an unguarded attitude to risk."