Swansea Crown Court has heard how the former chief executive of a Welsh charity used public money to take out a life assurance policy while the charity was in financial difficulty.
Nasir Malik, the former chief executive of the All Wales Ethnic Minority Association, is accused if 3 counts of fraud.
Mr Malik is charged with cashing cheques from Awema totalling over £11,000 to pay off personal credit card debts while also using the charities money for a life assurance policy.
Awema, which promoted equality and diversity in Wales, was wound up in 2012 after claims of financial mismanagement.
Today a jury heard the charity had reserve funds of £100,000 pounds but staff costs of over £127,000 in 2008.
The court were also told how Awema had given notice on their rented offices and had started laying staff off. Just a few months earlier Mr Malik had taken out a life assurance policy using the charities money costing £90 a month.
Giving evidence Awema's former Treasurer, Stephen Matthews, said in a meeting of the charities trustees he had warned how the charity could be wound up if they didn't secure new funding.
65 year-old Nasir Malik denies all charges of fraud claiming the cheques were used to offset work expenses while he was entitled to the life assurance policy after taking a salary sacrifice.
The case continues.
More top news
Carwyn Jones speaks to our Political Editor Adrian Masters in the final part of our pre-election series on ITV Cymru Wales.
Alexandra Lodge has been to Aberconwy, where Plaid Cymru, the Conservatives and Labour are all hoping to claim victory.
Cloudy skies to start the day, and rather windy with prolonged rainfall during the morning which will be heavy at times.