This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-wales-politics-33128404
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Tories raise ministerial code questions over Ideoba collapse | Tories raise ministerial code questions over Ideoba collapse |
| (about 7 hours later) | |
| There are calls for an investigation into whether the Welsh economy minister broke the ministerial code over dealings with a failed hi-tech firm. | There are calls for an investigation into whether the Welsh economy minister broke the ministerial code over dealings with a failed hi-tech firm. |
| Ideoba, run by former Plaid Cymru MP Adam Price and a US finance expert, collapsed last year. | Ideoba, run by former Plaid Cymru MP Adam Price and a US finance expert, collapsed last year. |
| Welsh Conservatives want to know whether Edwina Hart and a senior civil servant passed "privileged commercial information" to another adviser. | Welsh Conservatives want to know whether Edwina Hart and a senior civil servant passed "privileged commercial information" to another adviser. |
| The Welsh government said there was "no evidence" of wrongdoing. | The Welsh government said there was "no evidence" of wrongdoing. |
| The financial services firm closed after being unable to secure a £150,000 loan from the Welsh government. | The financial services firm closed after being unable to secure a £150,000 loan from the Welsh government. |
| The government's property expert David Goldstone advised against providing the loan. | The government's property expert David Goldstone advised against providing the loan. |
| A loan offer eventually made to Ideoba was for a smaller amount and with the condition that it was matched by funding from the firm. | A loan offer eventually made to Ideoba was for a smaller amount and with the condition that it was matched by funding from the firm. |
| The Welsh government said Mr Goldstone was acting in a personal capacity and the advice he gave was not connected to his role as an adviser on property. | |
| Speaking on Monday, First Minister Carwyn Jones said Mr Goldstone's contract had not been renewed after it expired in April. He said the adviser had not been sacked, the contract had come to a "mutual end". | |
| He added the decision was not related to Ideoba. | |
| 'Unaccountable individuals' | 'Unaccountable individuals' |
| But the Conservatives have questioned why he was involved in discussions with the minister about the loan in that case. | |
| David Goldstone said in an email to Ideoba's chief executive, American financial services expert Andrew Auerbach: "I have now spoken at length with the minister and also with [senior civil servant] Mick McGuire and it is clear to me that although I am not doubting the motives of those who are sponsoring Ideoba, nevertheless, this is not currently a project in my opinion for support by Welsh government… | David Goldstone said in an email to Ideoba's chief executive, American financial services expert Andrew Auerbach: "I have now spoken at length with the minister and also with [senior civil servant] Mick McGuire and it is clear to me that although I am not doubting the motives of those who are sponsoring Ideoba, nevertheless, this is not currently a project in my opinion for support by Welsh government… |
| "… I know that you realise that I am merely an advisor and this is not at this point in time the considered opinion of the Welsh government, but is merely the advice that I have given." | "… I know that you realise that I am merely an advisor and this is not at this point in time the considered opinion of the Welsh government, but is merely the advice that I have given." |
| In a letter to the first minister, the leader of the Welsh Conservatives, Andrew RT Davies said: "Mr Goldstone is employed to offer advice on property matters only and these matters are clearly of commercial confidence and of a sensitive nature. It raises serious questions for you and your government to answer. | |
| "It cannot be right that the minister and her officials are holding lengthy discussions over the granting of public money with completely unaccountable individuals, and it does pose a question as to whether the ministerial code has been breached. | "It cannot be right that the minister and her officials are holding lengthy discussions over the granting of public money with completely unaccountable individuals, and it does pose a question as to whether the ministerial code has been breached. |
| "I would also urge you to consider whether the ministerial code has been broken in this instance, as it is clear in Mr Goldstone's own words that he has discussed privileged commercial information with the minister and her officials." | "I would also urge you to consider whether the ministerial code has been broken in this instance, as it is clear in Mr Goldstone's own words that he has discussed privileged commercial information with the minister and her officials." |
| A Welsh Conservative spokesman said: "Whilst Mr Goldstone's decision to step down from his role in Welsh government is welcome, the reason behind his reported departure requires urgent explanation. | |
| "It also does nothing to explain the minister's involvement in the affair and her decision to hold discussions on a private business matter with a completely unaccountable individual; discussions which, it is alleged, led to the collapse of a firm and the loss of up to 100 new jobs." | |
| He said Mrs Hart's position could become untenable if it was found she had discussed or shared private commercial information with Mr Goldstone. | |
| Ideoba specialised in financial services with the aim of creating website search engines, giving investment organisations access to advice from 300 million experts across the world. | Ideoba specialised in financial services with the aim of creating website search engines, giving investment organisations access to advice from 300 million experts across the world. |
| The Welsh government had already invested £175,000 in the company which employed up to 10 people in highly skilled, well paid jobs. | The Welsh government had already invested £175,000 in the company which employed up to 10 people in highly skilled, well paid jobs. |
| The company's aim was to create 100 jobs in the future. | The company's aim was to create 100 jobs in the future. |
| It appears there were cash flow problems at Ideoba, which led to staff not being paid on time. | It appears there were cash flow problems at Ideoba, which led to staff not being paid on time. |
| According to documents filed at Companies House, staff are owed £40,000 as a result of the collapse, which they are unlikely to receive. | According to documents filed at Companies House, staff are owed £40,000 as a result of the collapse, which they are unlikely to receive. |
| The parent company in New York lost £500,000, Andrew Auerbach's US firm lost more than £250,000 and Adam Price, who was a director but not a shareholder, lost almost £70,000. | The parent company in New York lost £500,000, Andrew Auerbach's US firm lost more than £250,000 and Adam Price, who was a director but not a shareholder, lost almost £70,000. |
| Ideoba has said private investors were willing to come on board and the £150,000 loan from the Welsh government would have kept the company going until that could be arranged. | Ideoba has said private investors were willing to come on board and the £150,000 loan from the Welsh government would have kept the company going until that could be arranged. |
| Mr Auerbach says David Goldstone told him the reason it was not given, despite early indications from senior civil servants that it would be, was due to Adam Price's decision to stand for Plaid Cymru at the next assembly election. | Mr Auerbach says David Goldstone told him the reason it was not given, despite early indications from senior civil servants that it would be, was due to Adam Price's decision to stand for Plaid Cymru at the next assembly election. |
| This claim has been dismissed by the Welsh government as "demonstrably false" and "frankly ridiculous". | This claim has been dismissed by the Welsh government as "demonstrably false" and "frankly ridiculous". |
| A Welsh government spokesperson said: "No matter how many times the Welsh Conservatives try to repackage these allegations, there is nothing new and no evidence whatsoever of any wrongdoing. | A Welsh government spokesperson said: "No matter how many times the Welsh Conservatives try to repackage these allegations, there is nothing new and no evidence whatsoever of any wrongdoing. |
| "We have addressed these issues and our position on this matter has already been made perfectly clear. The First Minister will respond to Andrew RT Davies' letter in due course." | "We have addressed these issues and our position on this matter has already been made perfectly clear. The First Minister will respond to Andrew RT Davies' letter in due course." |
| Property career | Property career |
| David Goldstone is an 85-year-old businessman from Swansea who made his millions from property. | David Goldstone is an 85-year-old businessman from Swansea who made his millions from property. |
| He has been chairman of both Swansea and Cardiff football clubs. | He has been chairman of both Swansea and Cardiff football clubs. |
| Edwina Hart appointed him as a property adviser when she was the health minister and she continued to employ him in that role when she became the economy minister. | Edwina Hart appointed him as a property adviser when she was the health minister and she continued to employ him in that role when she became the economy minister. |
| The Welsh government also appointed him to the board of Cardiff airport, which it owns. | The Welsh government also appointed him to the board of Cardiff airport, which it owns. |
| The Wales Audit Office is currently looking into whether to launch an investigation into the Welsh government's handling of Ideoba. | The Wales Audit Office is currently looking into whether to launch an investigation into the Welsh government's handling of Ideoba. |