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A major £200m development in Carmarthenshire has been put on hold amid the suspension of senior academics at Swansea University.

Carmarthenshire council issued a statement on Wednesday saying it "needed further reassurance" and "need to show that the due legal process has been followed and public funds have been fully protected".

The council leader Emlyn Dole said that the assurances were needed "given the ongoing internal investigation at Swansea University".

One of the academics suspended by Swansea University was the dean of its school of management Professor Marc Clement.

Prof Clement is credited as being the architect of the ambitious Wellness Village scheme, which is looking to secure £40m in backing from the £1.3bn City Deal for the Swansea Bay City Region.

It is a joint project between Carmarthenshire council, Swansea University and two health boards.

It had been hoped that work could start on the project at Delta Lakes by the end of the year.

The first phase of the project, previously set to open in early 2021, is planned to include a community health hub, extensive landscaping and a top quality leisure centre.

It is also planned to include an institute of life science centre, assisted living accommodation and a hotel.

Alongside Prof Clement, three other academics have been suspended. One is the vice chancellor Professor Richard B Davies. The other two have not been named.

Prof Clement has vehemently denied any wrongdoing.

Mr Davies earlier this year announced that he was retiring at the end of the current academic year.

Carmarthenshire council said officers "have also been asked to explore a potential alternative delivery model for the Village".

(Image: James Davies Photography)

Prof Clement is a former director of Kent Neurosciences, but resigned in August 2015, before the company entered into a 10-month exclusivity deal with Carmarthenshire Council to be the wellbeing village's development partner back 2016. Kent Neurosciences was dissolved early this year.

In a EU procurement tender exercise, for which there was only one bidder, the contract was awarded to a newly-created company in Sterling Health.

Directors of Sterling Health include Franz Dickmann who is a former director of now dissolved Kent Neurosciences.

The project has yet to confirm the identity of its private sector backers.

It is understood that it has been in talks with a number of banks and other financial institutions, but as yet there is no confirmed backing.

Even if Carmarthenshire sign off the business case for the project following the independent assessment, the Welsh and UK Governments will have to carry out their own evaluations before releasing any City Deal backing.

However, without the required committed funding from private sector backers, they will not agree to any funding contribution.

The project is being driven by Carmarthenshire County Council, under its chief executive Mark James, in partnership with Hywel Dda and Abertawe Bro Morgannwg university health boards and Swansea University.

They say the proposed waterfront site at Delta Lakes would create 2,000 jobs.

Until private sector finance is committed the City Deal funding from the UK and Welsh Governments will not be released, even if Carmarthenshire Council sign off the business case following the independent assessment.

Leader of Carmarthenshire Council, Emlyn Dole, said: "Executive board members are satisfied that the project business case for the village is robust, but we need some further reassurance before finally signing it off.

"Given the ongoing internal investigation at Swansea University, this is the right and prudent thing to do because we need to show that due legal process has been followed and public funds have been fully protected.

“Once we get these final independent reassurances then the business case will be forwarded to the UK Government and Welsh Government for approval, enabling the release of City Deal funds that will contribute towards the overall project costs.

“Officers have also been instructed to explore an alternative way of delivering the village project, should the need arise.

"This is further evidence of our continuing commitment to deliver this transformational project for the benefit of people in Llanelli, Carmarthenshire and South West Wales as a whole.”

The life sciences and wellbeing village project includes:

An institute of life sciences with laboratory and clinic space, as well an incubator facility for business start-ups and research and development.

A wellness hub, incorporating a new 'state of the art' sports and leisure centre.

A health and wellbeing centre with facilities for education and training.

A wellness spa hotel

An assisted living area.

Bernie Rees, chair, and Steve Moore, chief Executive, of Hywel Dda University Health Board, said: “We welcome the ongoing commitment to delivering improved health and wellbeing facilities for the population of Llanelli and west Wales as well as the thorough scrutiny and assurance process which the local authority has committed to.”

Professor Medwin Hughes, vice chancellor of University of Wales Trinity Saint David’s, said: “UWTSD reaffirms the importance of this key project for the region and within a restructured initiative, would welcome the opportunity of furthering transformational change for the Swansea Bay City Region.”

Prof Clement a former vice-chancellor of the University of Wales, which was behind the Prince of Wales Innovation Scholarships Scheme