Powys County Council Cabinet members have been asked to explain how a building contract for a new Machynlleth school was given to a company that went bankrupt earlier this year.

A special meeting of Powys council’s audit committee sought to find out how and why contracts were given to Dawnus to build three schools, including a new all-through school in Machynlleth, and why Jistcourt was given a contract to build flats, when they were on the verge of collapse.

Porfolio holder for finance Cllr Aled Davies and Cllr James Evans, portfolio holder for corporate governance, housing and public protection, explained that they knew very little of what was going on.

Audit committee chair Cllr John Morris said: “We have two portfolio holders here. Can I ask both of you what involvement, if any, you had in procurement in particular in the areas of Dawnus and Jistcourt?”

Cllr Davies, who has overall responsibility for procurement, said: “I had no direct involvement.

“It does come down to the service and it was the head of service at the time who signed it off.”

Cllr Evans said: “We have little input. It’s to make sure there is no favouritism given by politicians, which I think is right. We look at the overall process.”

Cllr Tim van Rees asked how the portfolio holders would be briefed by staff on the contracts process.

Cllr Evans said: “On the Jistcourt issue, I was just told there were a number of companies bidding and going through the process. At the time I was not given the names of those companies.

“I and other portfolio holders get updates of where we are at with these processes. We can question if these businesses are sound – and we get assurances of a yes or no.

“By the time we get to final tender we get told that ‘company X’ has been awarded the contract.”

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