The troubled Cylch community recycling network has announced it will cease ‘frontline’ operations from September and the staff of eight will be made redundant.
In the summer of 2012, potential conflicts of interest were alleged involving Cylch’s former chief executive and founder Mal Williams and his role with Plastics Sorting Ltd which had gone into administration.
Following the allegations, the Welsh Government carried out a nine-month audit.
In response, the trustees said: “It is very important that Cylch members, our sponsors and the wider public understand that the investigations into Cylch do not include any matters that are criminal in nature, any misappropriation of funds or inappropriate personal gain from Cylch’s activities or any of the companies or projects associated with Cylch”.
The trustes said the loss of loyal staff was a “deep regret”. Vice-chair Richard Northridge told MRW that Cylch would no longer carry out ‘forntline’ operations but the trustees had some investments to manage.
The network’s annual accounts for 2011-12, published in May, raised questions over Cylch’s ability to continue as a going concern.
This month, the Charity Commission notified the trustees that it was to investigate the organisation.
The trustees’ statement in the wake of these events, contained three measures:
- Cylch will not seek further core funding from the Welsh Government after the conclusion of the temporary extension of its funding to the end of September 2013.
- The trustees will oversee the discharge of Cylch’s outstanding obligations to the Welsh Government - primarily management of the Cylch investments and the meeting of commitments regarding the funding of FareShare Cymru.
- The trustees have initiated an internal inquiry into the issues raised by the investigations.
For 15 years, Cylch has provided information, advice and support to a group of more than 50 waste minimisation, reuse, recycling and composting organisations throughout Wales.