SDLP Foyle MLA Pat Ramsey says the way applications for the European Social Fund have been handled to date have been an absolute sham.
“We have just learned of an awful debacle taking place within the Department for Employment,” says Mr Ramsey.
“Tens of millions of pounds are owed to groups within the disability sector. As a result some of them may have to go bankrupt.
“What has happened to these groups in the last few months has been nothing short of traumatic.
“In some instances staff who work incredibly hard for the most vulnerable in our society have not been paid for weeks.
“I personally know of 13 groups owed £12m. What I do not know is how they will be able to avoid being forced to declare themselves bankruptcy.
“It is deeply alarming to learn that while those staff were not being paid, the Department was getting reports from its auditors that the way it was dealing with the applications for funding was unsatisfactory – yet it kept going.
“The Minister apologised today but that is not enough. Stephen Farry must take control and ensure the groups who are owed money get it as soon as possible.
“We must all make sure we do not let down those who support the most vulnerable in our society, particularly now as they endure drastic cuts to their budgets as a result of the British Government’s austerity agenda.
“Yesterday Dr Farry criticised the SDLP for not supporting the Budget Bill, claiming his party’s ‘principled stand’ to vote it through would protect the most vulnerable.
“Sadly we found out today it is precisely the most vulnerable who his department has let down.”