Cops drop criminal investigation into scandal-hit UVF-linked community group

The Ballymac Friendship Centre in east Belfast has been at the centre of allegations of fraud, embezzlement and misappropriation of public funds since March this year.

The Charity Commission and PSNI were actively investigating the claims which surrounded £80,000 in public funding.

As recently as last week the Commission told the Sunday World they were continuing to monitor the situation.

A Sunday World investigation first uncovered claims over the alleged misuse of taxpayers’ money five months ago.

Stormont’s Executive Office this week told us the police investigation had concluded.

“PSNI has confirmed it will take no further action in respect of the Ballymac Friendship Centre case,” said a spokesperson.

In a follow-up statement the Executive confirmed their own investigation had yet to be concluded.

“We await a report from the Fraud Investigation Service before deciding on a course of action,” it said.

The Sunday World has spoken to a number of sources, including those close to the Executive Office, who have indicated that there are suspicions of suspected fraud around £4,500 of the overall public funding for the centre.

It is now clear that is the proportion of Executive Office money granted to Ballymac. The remainder was secured from other Stormont departments including the Department for Communities.

It is now understood the Executive Office investigation is restricted only to the portion of funding they were directly responsible for, and is the only amount investigated by PSNI.

But despite suspicions, the PSNI is taking no further action.

Sources have told the Sunday World that significant questions remain over the rest of the funding.

The Ballymac Friendship Centre has been battleground for the influence of rival UVF factions. Loyalist William McCaughey was a director and has been cited as a divisive at the centre on Fraser Park, close to Pitt Park in the east of the city.

He has since been sidelined but the UVF connections at the centre have remained in place.

Last week the Sunday World published pictures of newly appointed director Andy “Rambo’’ Herron laying a wreath on behalf of the terror group during a loyalist parade in the east on June 27.

Our sources have claimed there remains serious concerns about the centre’s finances.

There are plans for the reconstituted board of directors to apply for fresh public funding and rebrand the centre as the David Ervine Hub, after the late PUP leader and peace process architect.

The new funding application will see the establishment of a “loyalist museum’’ at the Pitt Park premises which critics have described as a “shrine to the UVF’’.

There is also the question of the premises themselves, which are valued in the region of £350,000.

Ballymac Friendship Centre has become the focus of a series of questions tabled to the Executive Office my MLAs since the Sunday World revelations.

In May Alliance MLA Paula Bradshaw tabled a number of written questions seeking assurances about the allocation of public money raising concerns about the Ballymac money. In response, the Executive Office told her that any group found to be in breach of the terms of their letter of offer can have funding withdrawn.

The SDLP’s leader at Stormont Matthew O’Toole tabled a further question to ask the First and Deputy First Minster to set out how much funding has been provided by the Executive Office to the Ballymac Centre in each of the last five years.

“It is entirely reasonable to ask how public money is being spent and to ensure it is going to the right place,” he said.

When contacted, McCaughey confirmed Ballymac was under investigation but insisted he initiated the inquiry. He is not named among the newly appointed directors.

Today's News in 90 Seconds - July 16th