AN ETHNIC voluntary group has been urged to give back around £35,000 in unspent grants.
Blackburn Conservatives are demanding the return of cash given to the borough's Ethnic Minority Development Association, formed to act as an umbrella agency for the ethnic minority voluntary sector.
They say the money should be used instead to fund the South Asian culture centre at Blackburn Museum.
But Labour council leader Malcolm Doherty is satisfied the money will be properly spent.
Tory leader Coun Don Heatlie-Jackson said the council paid £10,000 each year to EMDA, which also got City Challenge cash.
He said: "We discovered there was an £80,000 surplus in EMDA funds and made strong protests about it. The Labour group response was to grant a further £10,000.
"An internal audit showed the bulk of the surplus could be attributed to urban programme funding, and £35,000 falls directly within the remit of the council. "We believe there is a moral obligation to put these funds back into the community of which they are a part."
Council leader Coun Malcolm Doherty argued: "This is legitimately EMDA's money, given in the form of grants.
"It is being spent on the purposes for which it was given, but there were problems for a spell when development workers were not in post and the money was not spent.
"This was the government's cash, given through urban programme, and we have cleared with the Government Office North West the way in which the money was to be used and they are happy about it."
Coun Doherty said the council had not given the £10,000 annual grant for the past two years because of the cash reserves, but that did not mean it would be written out of the budget in the future.
EMDA chairman Janaid Qureshi challenged Tories to meet him and see what the group had helped achieve, including a homework centre for youngsters, luncheon clubs, and a day care centre.
He claimed Conservatives were invited to EMDA events but never attended.
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