Conwy County Borough Council say that no budgets were affected by the loss of £125,000 in the fraud by an ex-serviceman.
In a statement following the sentencing of Christopher O'Neill the council said the circumstances had "been fully investigated through a rigorous internal audit" and that their external auditors had "carried out a thorough review of arrangements for managing grants."
Conwy County Borough Council is extremely disappointed that it was amongst the victims of this despicable fraud.
The Council and its partner agencies aimed to assist former members of the armed forces who required particular help via the establishment of the Hotel Project.
When assurances sought from O’Neill were not forthcoming, it was Conwy County Borough Council that formally referred the matter to North Wales Police, and the Council’s Head of Audit was due to give evidence at the trial.
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