Civil servants' expenses examined

Dame Gillian Morgan will examine civil service expenses in Wales

The expenses system for Welsh civil servants is to be reviewed to ensure it provides value for money.

The assembly government's top civil servant will lead the examination.

A spokesperson for permanent secretary Dame Gillian Morgan said the expenses of politicians and civil servants were "clearly a matter of public interest".

It was earlier revealed officials promoting Welsh business abroad claimed £750,000 on 35 corporate credit cards over the last year.

Dame Gillian's spokesperson added: "Any claim incurred on behalf of the assembly government must comply with strict authorisation and audit requirements.

"The first minister and deputy first minister have discussed this matter and have asked the permanent secretary to examine the expenses system for civil servants working for the Welsh assembly government to ensure its appropriateness and to ensure transparency and continued value for money."

The quarterly expenses of the permanent secretary and director generals will be published soon and then be published regularly.

An independent panel has already proposed drastic reductions in the expenses Welsh assembly members can claim.

Last year, AMs claimed more than £230,000 for mortgages and rent, £4,500 for air travel and nearly £50,000 for meals and subsistence.

'Runaway culture'

From October, monthly updates of AMs' expenses will be posted on the assembly's website.

BBC Wales political editor Betsan Powys said a root and branch review of the system is promised by the top civil servant in Wales.

The announcement came within hours of criticism that officials promoting Welsh business abroad spent over £750,000 on corporate credit cards in the past year.

Tens of thousands of pounds were spent on flights and visits to top hotels by International Business Wales (IBW).

The assembly government said officials had to pursue viable business leads.

While ministers believe the claims are justified and within the rules, the Liberal Democrats said every Welsh taxpayer "deserves an explanation".

The assembly government said officials had to pursue business opportunities and were now covering a number of countries from fewer offices.

But the Liberal Democrats, who obtained the figures from a freedom of information (FOI) request, said it suggested a "runaway culture of spending". The details, from 35 different corporate credit card accounts for the year June 2008 to end of May 2009, were revealed in response to the FOI request.

The cards were used by civil servants working for IBW, which has offices in major cities including New York, Hong Kong, Tokyo and Paris.