Owners of company with £50m energy contract caught in investigation

The owners of a firm that has been granted a contract by the Welsh Government, aimed at improving energy performance in Welsh homes, worth £50m over three years had been caught up in a Scotland Yard fraud investigation.

Everwarm, who were bought by Lakehouse in 2014, have won the tender for Arbed 3, which is a government scheme focused on energy efficiency.

The investigation involves allegations of overpayment in relation to works carried out by a third party subcontractor.

Housing services company Lakehouse have denied any wrongdoing.

Plaid Cymru AM Adam Price said the Welsh Government's procurement policy needed a "complete rethink".

Melin Homes, who won the contract for Arbed 2, submitted a joint bid with Grwp Cynefin for phase 3.

In the evaluation process Scottish-based Everwarm received the same score as Melin/Cynefin on Welsh language provision. Melin/Cynefin have appealed against the Welsh Government decision to award the tender to Everwarm.

Cabinet Secretary for Finance and Local Government Mark Drakeford told AMs there will be a further period of analysing the Everwarm bid following concerns raised by politicians and legal submissions by other bidders.

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