'Significant failings' in Green Man Gilestone Farm purchase
The farm in Talybont on Usk in Powys was purchased by the Welsh Government for £4.25 million in 2022 in order to lease to the owners of the Green Man Festival.
The Senedd's Public Accounts and Public Administration Committee have now found that 'avoidable mistakes' were made.
In a report released today (July 28), multiple failings were found - raising broader concerns about 'governance, due diligence, and community engagement'.
Chair of the Committee Mark Isherwood MS said: 'The Committee is deeply concerned by the Welsh Government's handling of the purchase of Gilestone Farm.
'While we recognise the importance of acting swiftly to support the creative sector, this decision was taken with avoidable haste and without the thorough due diligence that the public rightly expects.
'It raises serious questions about internal processes and the robustness of governance structures.'
The report finds failings with how officials interacted with people in the local community who 'felt disengaged and uninformed about the Welsh Government's intentions, with failings acknowledged by officials'.
It also found that the Welsh Government 'did not keep a record of matters discussed with Green Man in various meetings during its consideration of Green Man's outline business plan and leading up to the purchase of the Farm.'
The committee found that the one of the Welsh Government's key motivations to buy the farm quickly 'was the opportunity to use an in-year underspend to fund the purchase, along with the consequential requirement to complete the purchase by 31 March 2022'.
The report found that this 'avoidable haste" was "driven by the financial year-end" and "compromised the Welsh Government's ability to clearly articulate and fully consider as part of its decision-making process the underlying rationale for purchasing the site'.
Since the purchase, the site has seen the arrival of nesting Ospreys in 2023, the first time they have been seen so far south in over 200 years.
As a result an 'Osprey Conservation Plan' has been put in place, leading to complications at the site for further use
In a letter quoted in the report it notes that 'it is clear that the full commercial and charitable objectives of the Green Man Group, as set out in its business plan for the use of Gilestone Farm, can no longer be realised.
'This is because the report advises that a 750m restricted zone around the nest must be in place on the farm within which only very limited human activity can take place.'
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A subsequent valuation has found the site is now valued at £3.75m.
'The significant loss in the value of the property is particularly notable in the current financial climate, and we expect the Welsh Government to clarify its future intentions for the site and to set out how it will mitigate the financial loss to the public purse,' added Mr Isherwood.
'To ensure lessons are learned, the Committee will want to carry out further work looking at the Welsh Government's approach to property investments, to assess whether current processes are sufficiently rigorous and fit for purpose.'
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