PEMBROKESHIRE County Council is to urge the Welsh Government to lift its suspension on funding for the property grant scheme in Pembroke and Pembroke Dock.
A council spokesman confirmed the matter was discussed by cabinet on Monday (April 7) following the exclusion of the press and public.
The controversial Pembroke and Pembroke Dock Commercial Property Grant Scheme (CPGS) – part of which is the subject of a police investigation into allegations of fraud – came under the spotlight again last week after the Welsh Government announced it had suspended funding.
A Welsh Government spokesman said: "As a precautionary measure, WEFO (the Wales European Funding Office) has temporarily suspended EU funds payments to Pembrokeshire County Council in respect of its CPGS while the council's review of eligibility of expenditure is under way."
Dyfed-Powys Police has previously confirmed that allegations of fraud relating to part of the scheme are being investigated. The council referred the matter to the police after concerns were raised by councillors.
The council spokesman added: “Recognising the benefits of the projects awaiting funding, cabinet determined to urge WEFO to provide confirmation of the expected additional European Regional Development Fund (ERDF) contribution as soon as possible.”
The £1.47m CPGS has helped restore a number of properties in the towns.
At Monday’s meeting, council chief executive Bryn Parry Jones said applications approved by cabinet in December and January were to be discussed in private “now that the funding is not as clear as it once was”.
Four grants totalling nearly £400,000 were approved by members at those meetings.
Pembroke Dock county councillor Sue Perkins said: “This funding has made a tremendous amount of difference to Pembroke Dock. It would be such a loss to Pembroke Dock and Pembroke to lose that funding now.
“We want the town to thrive and the way it presents itself makes the difference as to whether people stop or drive past. The grants make that difference.”