A lottery quango has hired an international firm of auditors to investigate a Commonwealth Games legacy project managed by a Labour councillor in Glasgow.
The Big Lottery Fund (BLF) called in outside help after reviewing how its £1.3m award for the multi-purpose Dalmarnock ‘Hub’ had been spent.
Opened last year by football legend Kenny Dalglish, city council leader Frank McAveety and Sports Minister Jamie Hepburn, the Hub provides nursery, GP, dental, pharmacy and IT services under one roof.
The project has been overseen by a charity – the People’s Development Trust - and a key staffer is Calton councillor Yvonne Kucuk, who was appointed as the PDT's £35,000 a year “regeneration manager”.
The Legacy Hub, located in the shadows of the Emirates arena in the east end, benefited from £3m from the Scottish Government and £1,295,000 from the BLF, while Glasgow city council sold land to the Trust for £1.
However, the flagship scheme has been marred by splits.
Local reverend Alison Davidge and others quit the Trust board last year, after which she contacted the BLF about the departures.
As a result, the quango launched a review to examine whether its funding had been used in line with its grant agreement.
The probe has escalated after the BLF’s internal audit department contracted Mazars, one of Europe's largest accounting firms, to carry out checks.
Around £840,000 of the award was to part-fund the Hub’s construction and £455,000 was for four years’ operating costs.
It is understood the BLF has not found any evidence of wrongdoing relating to its funding of the project, but audits like these are only carried out on a small number of occasions each year.
The BLF can take a range of actions to protect its funding, such as requiring the repayment of a grant in full.
The Hub project has also attracted publicity over the number of Mrs Kucuk’s relatives who are, or have been, linked to the scheme.
Mrs Kucuk took up her role in 2011 and her cousin Alan Kennedy was appointed to the Trust board in the same year and replaced by his son Robert in 2014.
It was also reported that Mrs Kucuk's husband works at the Hub on the catering side.
Fellow Labour councillor Maureen Burke also declares a paid job at the Trust.
A BLF spokesman said: “It's a term and condition of our grant that we know our funds are being spent appropriately and in line with our agreement. With this in mind our internal audit department has appointed Mazars, an independent organisation who will begin their assessment mid next week with a view to report back to us in approximately a month’s time.”
A Scottish Government spokesman said: “We are in regular contact with the Big Lottery Fund and are aware of their plans. We are also in close contact with the People’s Development Trust to support them to deliver the Legacy Hub and local services for the local community."
PDT chair Tracy Spence said: "The PDT Board are in regular contact with Big Lottery. We are aware Mazars have been appointed as an external auditor and have no concerns regarding this, we will be working closely with them as they carry out their assessment."
A Glasgow city council spokesman said: “It would not be appropriate for us to comment on matters which are between two external organisations.”
Mrs Kucuk did not respond to requests for comment.
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