ONE in 10 expenses claims by civil servants promoting Wales abroad might have broken the rules, a review found today.

A "small number’’ of transactions at International Business Wales clearly breached policy and may result in disciplinary action.

Auditors were called in when it emerged officials at the Assembly Government's overseas investment agency spent £750,000 on corporate credit cards in a year.

Accountants at KPMG highlighted a series of "unusual items’’, including £345.22 on a residential electricity bill, £553.87 on children's school text books and £3,394.44 on hiring a bar to entertain clients during a Wales vs South Africa rugby match.

A two-month forensic investigation found one first-class flight that broke rules which allow staff to travel business class on flights longer than two-and-a-half hours. It is not known whether the official was upgraded.

Permanent Secretary Dame Gillian Morgan said staff flew business class instead of economy, as they are required to do on shorter trips, in a "small number of cases’’.

There were 781 transactions - 11% of the total, and worth £294,753 - where there may be breaches of policy. More work will be done before Christmas to find out if anyone has failed to comply.

Policy was classed as "unclear’’ in a further 817 cases, worth £282,198.

Dame Gillian said: "I accept the conclusions of the KPMG report and welcome the recommendations made.

"We will work urgently to address issues raised by KPMG and to introduce the changes and improvements needed to strengthen expenditure control procedures.

"It is vital that we have clear policies and robust systems in place so that ministers, AMs and the public have confidence in their public servants.’’ She maintained that using group credit cards was a good idea as it allowed the Assembly Government to pay bills quickly.

Speaking at First Minister's questions, Rhodri Morgan said: "The accountancy report that has been carried out has come to some uncomfortable conclusions and appropriate action will now follow through in the normal way after you have had a forensic accountancy report.

"This almost sounds a little bit like matters going on in the House of Commons - the number of cases is very, very small. But where appropriate, appropriate action has to be taken.’’ Welsh Liberal Democrat leader Kirsty Williams, who disclosed the scale of spending on IBW credit cards in July, said: "On the issue of expenses, the report confirms our very worst fears about the culture of spending in IBW.

"The failure of Government to ensure that taxpayers' money is spent wisely and effectively is clear for all to see.’’