4. Topical Questions

Part of the debate – in the Senedd at 3:19 pm on 18 July 2018.

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Photo of Lee Waters Lee Waters Labour 3:19, 18 July 2018

Thank you, Cabinet Secretary. Last year, the Public Accounts Committee criticised NRW for giving a £39 million contract to BSW Timber in Newbridge-on-Wye without competition. It did not represent value for money but it was justified on the grounds that the firm would invest in a new sawmill, which would benefit the industry overall. They didn't deliver on that deal. We now discover that NRW has done it again. The Wales Audit Office now tells us NRW has awarded 59 contracts where there's no evidence this has been done at market price, and some contracts were awarded without tender. Twenty one of these were to BSW Timber, the same company that had reneged on the last deal. What is going on in NRW? To have their accounts qualified for the third year running is unprecedented and frankly outrageous. I'm struggling to think of an explanation for why this might be. Might it be corruption or incompetence? But it does appear that the forestry section of NRW is out of control; the internal audit controls are not fit for purpose. Where is the board in all of this? After the woeful performance before the PAC, the previous chief executive, Emyr Roberts, left, albeit with a large pay-off, which does stick in the throat. I'm encouraged by the auditors' view that the new CEO, Clare Pillman, has responded in a way that suggests that she does take the issues, at last, seriously, but what about the chair, Diane McCrea? Where has she been? How could she let this happen again? She was in charge last year. I think this should give us pause for thought about creating large organisations like this. If this was any other organisation—if this was a local authority, we'd be putting them under special measures. So, I'd ask the Cabinet Secretary—. I think this is an extremely serious situation. I'm really quite angry and baffled that this has happened for the third year running, and I'd hope she takes this extremely seriously, and I think there should be accountability from the senior leadership at board level and at executive level of this organisation, which does seem to be out of control.