The All Wales Ethnic Minority Association (AWEMA) was a Swansea, Wales-based charity, which was focused on national-level distribution of funds to various ethnic minority projects across Wales. It lost its charity status and funding in 2012 following repeated claims of mismanagement, investigated by the Welsh assembly.
Contents
Operations
AWEMA, a company limited by guaranteed and registered charity, was governed by a Council of Members that are drawn from the five electoral regions of Wales. AWEMA’s principal objective is to promote equality and diversity for the benefit of the Welsh public. This is achieved within four objectives:
AWEMA received £8.4m of public money in 2011, including the National Assembly for Wales, European Union and National Lottery funding.
Awema lost all its funding in 2012 following investigations into claims of gross mismanagement by the funding bodies. On 15 January 2013, following a year-long investigation it was announced that South Wales police will be meeting with the CPS to discuss their findings.
Board
Trustees
Directors
Controversy
In 2004, Welsh Government Minister for Social Justice Edwina Hart commissioned an independent report on AWEMA's projects. The report stated no new projects should be funded until AWEMA demonstrated improved project and performance management, and that as a result AWEMA should be graded "high risk" by as a publicly funded institute. The conclusions stated:
On 2 July 2007, acting chairman Mr PK Verma and two other trustees resigned from the board of AWEMA, after being thwarted in an attempt to call a special board meeting. In a letter to the board and further correspondence to the Welsh Assembly, Mr Verma stated that:
A senior Welsh Assembly government official replied on 13 July 2007 to Mr Verma, stating that "these are essentially internal operational matters and ones for you and the board to resolve."
In early January 2012, CEO Naz Malilk and his daughter Tegwen Malik (Operations Director), were involved in controversy involving claims of bullying and "financial irregularities" at AWEMA. AWEMA admitted that Naz Malik had been disciplined after admitting using more than £9,000 of AWEMA’s money to pay off his credit card debt, a payment which he stated that he regarded the money as an advance on his expenses. A resultant report prepared by an independent investigator Dr Paul Dunn suggested that AWEMA was an organisation mired in nepotism, with Malik’s daughter and daughter-in-law also working for it in senior roles, and his wife and son as volunteers. Dunn recommended the immediate suspension of both Naz and Tegwen Malik pending further investigations, something which new chair Dr Rita Austin choose not to implement, citing cost grounds.
As a result, the National Assembly of Wales (NAW) instigated a full report on AWEMA. On 26 January 2012 public funding was suspended by the NAW (holding £3M in funds), and the Big Lottery Fund. Under questioning from the NAW Public Accounts Committee (NAWPAC) on 31 January 2011, Welsh Permanent Secretary Dame Gillian Morgan said that the Welsh government was "extremely concerned", and that as a result of the 2004 report AWEMA had not been graded "high risk". As a result of her evidence, NAWPAC chair Darren Millar stated that the police should investigate the allegations of financial corruption at AWEMA.
After it emerged that Naz Mailk had campaigned with First Minister Carwyn Jones for his son Gwion Iqbal Malik, who stood on Welsh Labour's Mid and West Wales regional list for the National Assembly for Wales elections in 2011, the First Minister made a statement in the National Assembly to state that Welsh Labour and the National Assembly had "nothing to hide". Under pressure to make the 2004 report public, it emerged on 7 February 2012 that the report had been placed in the NAW library in 2004.
New Chair Dr Rita Austin defended AWEMA, posting of a 13-page report on AWEMA's website. In it she stated that AWEMA had become a "stick to beat the Welsh government", and that attacks on it were a "time honoured way of debasing and devaluing" black and ethnic minority people. Further, following questioning on BBC Wales politics programme Dragon's Eye on 2 February, Dr Austin demanded that BBC Wales immediately amend a headline it had been running on its website.
On 9 February 2012, NAG Finance Minister Jane Hutt announced that all Government funding to AWEMA had been terminated after a joint NAW/Big Lottery Fund investigation found "significant and fundamental failures", and a "fundamental lack of control". The report found that expenditure of charity funds included: £2,120 on gym memberships for staff; £800 on rugby and cricket tickets; £110 on paying a parking fine for CEO Naz Malik. Hutt further announced that the Wales Audit Office was to carry out a "thorough and independent review" of the history of funding to the charity. Additionally, on the same day, the Charity Commission said it has opened a statutory inquiry into "serious concerns" about AWEMA, while South Wales Police were considering the NAG/BLF report findings.
On 17 February, CEO Naz Malik and Finance Director Saquib Zia were dismissed following the allegations of mismanagement.