Calls are being made for the Welsh Government to explain why it didn’t raise the alarm about a contractor which went on to collapse, setting back plans for Machynlleth’s new Ysgol Bro Hyddgen building.

Contractor Dawnus went bust earlier this year leaving Powys County Council having to find a new firm to take over the delivery of projects, including the new all-through school building at Machynlleth. It has emerged that, despite concerns about the company’s future, the Welsh Government, which provided funding to Dawnus, did not issue any warnings to local authorities about either Dawnus or Jistcourt, another contractor that collapsed.

That has prompted Powys council’s audit committee chairman, Cllr John Morris, to demand answers from the Welsh Government, with Cllr Morris saying he would be speaking to council chief executive Dr Caroline Turner about getting answers.

Committee vice-chair and independent member John Brautigam had produced a report into the problems with the companies and found that, despite being concerned enough to plough money into Dawnus, the Welsh Government had not raised those concerns, claiming that commercial sensitivity meant it could not raise the alarm about the company’s finances.

However, that decision was criticised by councillors.

Cllr Gwynfor Thomas said: “I’m unhappy as we could have stopped this happening if we had been notified of the situation.

“It’s given us a bad reputation and there’s a financial obligation."

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