QUESTIONS have been asked about the role played by Bolton Council in the running of the Mojo Trust — after the charity went into administration.

Twenty two staff members at the charity — formerly known as Bolton Wise — have been made redundant following the organisation's failure secure a crucial apprenticeship status, which accounted for a significant amount of its funding.

Bolton Council has supported the training and skills charity, based in Brownlow Way, since its creation in 1997, providing services such as payroll and placing elected members from different parties on the Board of Trustees.

But following the collapse of the organisation, Conservative group leader Cllr David Greenhalgh has accused the ruling Labour group of “taking its eye of the ball” and being “completely oblivious” to the financial troubles taking place within the charity.

The council has strongly denied his claims stating that it was well aware of ongoing problems and had taken steps to keep the charity afloat — until the loss of the apprenticeship contract last month.

Cllr Greenhalgh said he believes the trust racked up debts of £750,000 with the council adding that the money will now be irretrievable — another claim refuted by the council.

The Tory leader said: “At a time when the council is being asked to tighten its belt further and jobs and services are under review it is completely unacceptable that the council and the ruling Labour group has taken their eye off the ball and allowed a three-quarters-of-a-million pound debt to accrue.”

The Bromley Cross councillor has written to council leader Cllr Cliff Morris with a number of specific questions about the nature and extent of any debts owed and how they were manifested.

He added: “It happened because the council and the Labour group were completely oblivious as to what was going on — who is keeping an eye on these debts?”

“What’s more there seemed to exist a culture within MOJO Trust that they could continue to receive services without paying for them from the council, without fear of reprisal.”

In response Cllr Morris told the Tory leader to “get his facts right”.

He said that as soon as the council became aware of financial difficulties within the trust last year it stepped in to help — and agreed to convert the money owed into a five-year-loan to keep the organisation afloat. He added that the council cabinet agreed this arrangement.

He added: “We arranged a repayment scheme and they were meeting it regularly and on time until they lost the crucial apprenticeship contract, which was a government decision and that’s when they called in the administrators in.”

The council said it was also “very hopeful” of recouping the majority of any debts owed after it put measures in place meaning it would have first option to receive the liquidated assets of the charity — including two buildings in Brownlow Way.

Cllr Morris said: “Over the years the trust has done many good things including through its most recent work in managing hundreds of apprentices through their qualifications.

“Last year, the Mojo Trust was unable to recover income it was owed and therefore could not repay its costs to the council.

“The council had to make a judgement around protecting its own interests but balancing this against the work that the trust was doing to support many young people, in particular into employment.

“At this stage the council converted the trust’s debt into a loan, helped the organisation with its business plan and secured interests on its property assets on the basis that should Mojo Trust cease to operate there would be a realistic chance that we would be able to recover much of the debt.

“Unfortunately in the last few weeks Mojo Trust has lost one of its main contracts and has therefore had to go into administration.”

Cllr Morris said the authority remains hopeful that by working with the administrators it can minimise the impact on those who were being supported — including allowing more than 100 apprentices to complete their programmes.

The council has said that once the administration process is completed it will put another report to the cabinet regarding the process of recouping the debt.

Cllr Greenhalgh has called for a full and transparent review.

He added: “This has happened as a result of bad management and poor practice — the people of Bolton have a right to expect that their council is run efficiently. I urge the leader to conduct a full review.”