In yet more set backs for the Circuit of Wales, the Welsh Audit Office is launching an investigation into how £9 million in public money was spent in relation to the project.
The Welsh Government awarded the Circuit of Wales a development grant of £2 million whilst also underwriting a bank loan of just over £7 million back in 2014. However, according to BBC Wales, MP for Monmoth and chairman of the Welsh Affairs Select Committee David Davies is seeking to suspend further funding coming into the project until the Audit Office has conducted an investigation based on evidence received from a whistle blower.
“I think they should say to Michael Carrick (head of the Heads of the Valleys Development Company) ‘it’s down to yo if you have private investors out there willing to back the scheme, bring them forward, let us know who they are’,” said Davis.
“At least £9 million has gone into the scheme of public money and I think it’s time they started to find out what’s happened to that money and not put any more money into it.”
This is just the latest in a long line of hurdles faced by HOTVDC in recent months. Earlier in the year, Carrick was investigated over why £35,000 of gardening work had been billed to the project, the former Bahrain International Circuit CEO claiming it was an administrative error.
The project took a big knock back in April when the Welsh Government refused to underwrite the £350 million of investment being put forward by Aviva, then economy minister Edwina Hart saying that this posed too big a risk for the Welsh taxpayer. The project tried again to get the Welsh Government to underwrite 75 per cent of the Aviva investment, but were once again turned away.
However, things looked to be on the up for CoW when it was announced in October that a London-based merchant bank was putting in place £100 million of private investment. This was heralded as ‘the final piece of private funding required’.
CoW secured a five-year deal with Dorna Sports to host the British round of the MotoGP World Championship, which began last season. It had originally been hoped that the circuit would be ready for next year’s race, but 2018 now looks like the earliest Wales will welcome Grand Prix motorcycle racing.
Silverstone has remained as the host circuit of the British Grand Prix since 2015 whilst CoW continues development, the Northamptonshire circuit returning to the calendar once again for the 2017 season.
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