Local investigation into Dawnus collapse

By Elgan Hearn, Local Democracy Reporter

The demise of Swansea-based construction company Dawnus, the doomed company behind Welshpool’s primary schools projects, will be discussed by members of the Audit Committee today (Thursday).

Committee vice-chairman and lay member John Brautigam has put together a report that looks at the time line of the firm’s problems. He also looks at the role played by the Welsh Government in trying to help them. Dawnus went into receivership in March.

Dawnus had been given the contracts to build the 360-pupil English-medium primary school on Salop Road, and converting the Grade II listed Maesydre school building into a 150-pupil Welsh-medium primary school.

It had been expected that the staff and pupils would move into the English school in September, but the firm’s collapse has left it half finished.

The report states that The Welsh Government provided a £3.5 million support package and also indicated that The Welsh Government justified keeping Dawnus’ struggles quiet as “any release of information to client-based organisations may negatively influence their decision making process when the company is tendering for potential new work”.

The risk identified was suppliers or sub-contractors who would ask for payment up-front, putting pressure on Dawnus’s cash-flow.

“This is what led to their collapse,” Mr Brautigam added: “I’ve checked with the clerk to the National Assembly Public Accounts Committee and they’ve advised that the chair of PAC (Nick Ramsey AM) will be writing to the Welsh Government for further information on the support provided to Dawnus as part of its work considering Welsh Government Business finance.”

PCC has now put the contract to finish building Welshpool Church in Wales School on Salop Road out to tender.

Details of the contract can be found on the national procurement website, Sell2Wales with the deadline for tenders today.