STATEMENT FROM THE DIRECTORS/TRUSTEES OF CYLCH
In the summer of 2012 a number of allegations were made against Cylch. These allegations were made to the Welsh Government and the Charity Commission.
The allegations referred to potential conflicts of interest involving the Cylch Chief Executive in that role and, in another role, as Chair of Plastics Sorting Ltd (PSL).
Following the allegations the Welsh Government's Internal Audit Services carried out a nine-month audit, including collating extensive files and interviewing Cylch staff and trustees. Cylch has received a copy of the Internal Audit report and the trustees have had the opportunity to examine it in detail.
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 report of Cylch's annual accounts for 2011-12 was published in May 2013 and highlighted some important issues, including regarding Cylch's ability to continue as a going concern.
In July 2013, the Charity Commission notified Cylch’s trustees that it is to open an investigation into the organisation.
Following all these events, the trustees of Cylch have decided on the following steps.
(1) 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 consequence of this will be that Cylch staff will be made redundant from September 2013.
(2) The trustees of Cylch 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.
(3) The trustees of Cylch have initiated an internal inquiry into the issues raised by the investigations into the organisation.
It is with deep regret that the trustees of Cylch announce the redundancy of all staff. Since Cylch was formed more than 15 years ago, it has been served loyally by many staff and
volunteers. The trustees wish to thank all those who have worked for Cylch in the past and in particular to pass on our gratitude and best wishes to the members of staff who will finish in September.
Cylch has represented the network of reuse, recycling and composting social enterprises across Wales and we would like to thank all our members for their support and involvement. We would also like to thank past trustees of Cylch.
Now is not the time to hail Cylch's achievements. That time will come, but only once all investigations are concluded and their findings made public. Suffice it to say that all the trustees are proud of the achievements of Cylch, its staff and members. Cylch has contributed to a paradigm shift in resource management and the promotion of sustainable development under the inspirational and uncompromising leadership of Mal Williams. His fellow trustees pay tribute to Mal and express their regret and sorrow that events have led to the decisions in this statement.
No further comment will be made by Cylch trustees until the conclusion of the Charity Commission investigation.
Some of the trustees of Cylch are currently suffering from ill health and may find it necessary to step down before the various investigations are concluded and reported. This cannot and will not affect the intentions as set out in this statement.
MIKE CROXFORD MBE Chair
RICHARD NORTHRIDGE Vice Chair
Notes to Editors:
For release: immediately
Word Count: 583
Contact: Acting Chair –Richard Northridge
Tel: 07913 590095
Cylch is the Wales Community Recycling Network. It provides information, advice and support to existing and emerging community recyclers across Wales.
The Cylch Membership comprises over 50 community waste minimisation, reuse, recycling and composting organisations throughout Wales. These charities and social enterprises work for environmental and social benefit, providing employment and training opportunities within their local communities.