THE chief executive and finance director of a race relations charity have been sacked following a Welsh Government audit report.

All Wales Ethnic Minority Association (AWEMA) chief executive Naz Malik and the charity's finance director Saquib Zia have been dismissed with immediate effect.

The action was taken following a Welsh Government Internal Audit Services report and a written statement on Thursday, February 9, terminating all grants of public funds to AWEMA.

A statement on AWEMA's website said an insolvency practitioner would be appointed in due course as the company's administrator to take over control of AWEMA's business and assets from the charity trustees and to close the business.

AWEMA chair Rita Austin said: "Clearly there have been serious failings in the effectiveness of governance and financial management within AWEMA upon which the Welsh Government has acted, and upon which, in consequence, the AWEMA Board now act, with all due speed, one week later."

The chairwoman said the AWEMA board was now hopeful the swift and decisive action it had taken would successfully limit the damage to the charity's reputation.

She added: "The AWEMA Board would like to thank its staff for the dedicated service they have provided to several hundred participants registered with European funded AWEMA managed projects in Swansea and surrounding local authority areas, and in North Wales, especially in these last difficult weeks."

The Welsh Government report followed an earlier study commissioned by Awema's trustees, which said its chief executive Naz Malik had paid off a personal credit card bill by claiming £9,340 as an advance on future expenses.

It also alleged that his salary was increased to £65,719 without approval from the board, as was that of his daughter Tegwen, who worked as the charity's operations manager, and saw her salary rise from £20,469 in January 2008, to £50,052 in August 2011. Mr Malik had also claimed rugby and football tickets worth £800, while £2,120 was spent on gym membership for staff.

A Welsh Government spokesperson said: "We will continue to work with the Charity Commission to bring an orderly end to AWEMA. "Safeguarding public funding and the projects currently funded through AWEMA will continue to be our priorities and work is already under way to ensure this happens."

rupert.hall@swwmedia.co.uk.