Report highlights ‘basic failings’ in £1.6 million loss for Porthcawl project

Lewis Smith, local democracy reporter

A report published by Audit Wales has highlighted “basic failings” in the way financial support was managed for the failed Porthcawl Maritime Centre Project.

Plans for the maritime centre on the town’s Cosy Corner by the Esplanade were meant to bring a range of public attractions to the town of Porthcawl, including a coastal science and discovery centre along with a new café, wine bar and roof terrace.

It came after the Welsh Government approved £2.7 million in potential funding for the project in 2017 which was initially expected to cost a total of £5.6 million.

Match funding

This was made up of domestic Welsh Government match funding and European Regional Development Fund grant.

Credu Charity Ltd led the project working with Bridgend County Borough Council in its development.

However, in November of 2020 Credu Charity Ltd went into voluntary liquidation and the Maritime Centre was never built.

Based on initial findings, matters relating to the project and Credu’s involvement were referred to South Wales Police, though the police investigation concluded at the end of 2024 with no charges being brought.

‘Warning signs’

A report from Audit Wales has now said Welsh Government did not put “proper arrangements in place” to manage the risks associated with the centre, adding that “clear warning signs and opportunities to prevent or reduce the likely loss to the public purse were missed.”

The report, published in August 2025 said: “Between May 2016 and March 2020, the Welsh Government paid out £1.6 million to Credu for the Maritime Centre project.

“In August 2020, the Welsh Government withdrew ERDF grant funding from Credu and intended to recover all related grant payments.

“It did so amid concerns about rising project costs and progress with the project and its wider financing.

“In our view, the Welsh Government did not put proper arrangements in place to manage the risks associated with the maritime centre.

“If it had, it might have decided not to fund the project or, once funded, it would have identified that the project was failing far sooner.

“The liquidation of Credu is ongoing, but it looks unlikely that the Welsh Government will recover any of its claim.”

Audit Wales also felt that a lack of clarity in roles and responsibilities between different parts of the Welsh Government, the Welsh European Funding Office (WEFO) and Visit Wales, contributed to ineffective monitoring and oversight of the project.

They said: “We set out at the end of this report action the Welsh Government has taken to address matters arising from our work since we shared our emerging findings.

“This has included an internal audit review of other grant funded projects being overseen by Visit Wales at the same time as the Maritime Centre project. It has also included some further development of grants management guidance and processes for the whole of the organisation.”

‘Risk’

Adrian Crompton, Auditor General added: “All grant funded projects involve an element of risk. But this is not the first time I, or my predecessors, have reported on weaknesses in the Welsh Government’s management of its support to charities or private companies.

“While time has passed since the events described in this report, there were basic failings in this case and the lessons from it remain relevant today.”

While plans for Porthcawl’s Maritime Centre were never realised, a scaled back development worth around £3 million was recently completed at the Cosy Corner site, which includes a children’s play park, commercial units, public seating, and an all-weather canopy.