THE recriminations over the collapse of child care provider One Plus intensified yesterday with one Scottish Executive minister accusing the charity's management of being in a "state of denial".

THE recriminations over the collapse of child care provider One Plus intensified yesterday with one Scottish Executive minister accusing the charity's management of being in a "state of denial".

Des McNulty, Deputy Communities Minister, defended the executive's refusal of a bail-out bid by the organisation, and said management exercised poor judgement and did not appear to have proper financial controls.

But One Plus convener Hilary Long hit back, saying the executive had let down lone parents. The row erupted around the same time liquidators KPMG confirmed to staff that they would be made redundant, following Monday's decision to voluntarily wind up the organisation.

All but 29 of the 600 staff lost their jobs and those retained have been kept on to assist in the closure of the company.

Tearful staff and volunteers also staged a small protest outside Glasgow City Chambers after the meeting. The Herald revealed on Monday that One Plus had asked the executive for an emergency refinancing package of £2m and that it had asked Glasgow City Council for £3.5m in recent weeks. The executive said the proposal "just didn't stand up".

It has emerged that one of the organisation's main creditors was the Inland Revenue, which is understood to be owed several million pounds in unpaid National Insurance contributions, although this did not precipitate the final crisis. Other creditors include One Plus's bank which is again owed several million although the full extent of who is owed how much may not be fully established for months.

Yesterday, Mr McNulty re-enforced the executive's position, laying the blame at the feet of One Plus management.

He said: "If the board had acted in a different way and not been in a state of denial, then it might have been a smoother transition.

"Their board expanded when it should have consolidated - so poor judgment."

But Ms Long retaliated, claiming: "The executive have let down lone parents badly - their anti-poverty strategy now means nothing."

KPMG is already examining the company's affairs, but it insists it is too early to confirm the causes or extent of the company's insolvency or the likely outcome for creditors.