A CHARITABLE Trust working in one of the most deprived areas of Wales has gone into liquidation with debts of £200,000.

Detectives from Gwent Police are now examining the circumstances behind the collapse before deciding whether to launch a formal investigation into the closure of the Ebbw Fach Development Trust.

The company, which was run by members of the community, served the Brynmawr and Swffryd area and employed 13 staff. Nine have been made redundant following the financial difficulties.

Much of the charity was funded through the Assembly-run Communities First scheme, which provides cash for projects to help deprived communities.

The National Assembly has stepped in to save some jobs so some of the work the trust performed can be maintained.

It is hoped the Ebbw Vale and District Trust, which runs a similar service in Ebbw Vale, will be able to carry out some of the work undertaken by the defunct Ebbw Fach trust.

It provided direct employment and training, support to community groups, a furniture recycling initiative, undertook a wide variety of environmental schemes and allowed people aged between 16 and 25 to take their steps towards employment with their Ladder project.

Blaenau Gwent AM Peter Law said: "It's a very, very sad situation, which is unfortunate given that for the last ten years, it has done so much for the Ebbw Fach area.

"It has done some wonderful work that unfortunately will not be able to continue.

"For example, the furniture recycling scheme for poor people is no longer available.

"It has left a massive void because in such deprived areas we need all the help we can get."

Richard Dawes and David Thomas of Grant Thornton's Cardiff office have been appointed as joint liquidators of the Trust.