The WJEC is investigating Mr German's activities

He denied his criticism of Mr German was based on his own opposition to the coalition deal.

"This has been going on since July 1999," he said.

"This has been a major concern for the new board of directors ... for more than a year and a half now.

"If people say this is not serious, then why has the WJEC spent �35,000 employing outside accountants?

"Directors have been shocked by the huge problems of that unit, which was run by Mr German, particularly when they were told that the unit was actually in profit, doing a good job, when the truth was that it looks as if we might have to pay back hundreds of thousands of pounds to the European Union.

"Mr German's problems have dragged down the WJEC. Without the European Unit, the WJEC would have a very healthy profit.

"The credit card issue came up during that investigation.

Jeff Jones is a vocal critic of Mr German

"Last Wednesday I was shown for the first time the report. I was shocked. Quite frankly I was shocked.

"There are expenditure items here which to say the least are extravagant and which are rather odd," he said.

"We've spent the last year asking Mr German to appear before the audit committee to explain what happened to the European Unit. He's just ignored us.

"We spent the last year writing to an organisation called Colleges of Wales, of which Mr German was the secretary, asking them to pay back over �20,000 to the WJEC. They have just ignored us.

"If you have to pay back hundreds of thousands of pounds to Europe, then you would normally ask the person in charge of that unit what went wrong. He has refused to appear before us."

Allegations 'nonsense'

Mr German issued a statement denying the allegations, saying they were "factually untrue", a "smear campaign" and "vindictive nonsense".

"When I left the WJEC, the books were balanced, the accounts were in order, and the European Unit was drawing down millions of pounds worth of additional EU funding, for education and training projects right across Wales.

"Unfortunately, the in-fighting within local government in Wales has destroyed much of that work, and senior figures in the WLGA are looking to deflect the blame. It's about time they were forced to come clean," he said.

On Wednesday, he gave a press conference at which he produced documents to support his denial of the allegations against him.

Auditor 'should be called in'

Meanwhile the WJEC's audit committee was meeting to discuss the issue.

Afterwards, committee chairman Ernie Watkins issued a statement saying the committee had recommended that the district auditor should be called in and legal advice sought from the Welsh Local Government Association.

He said it was not a witch hunt against any individual and that the concerns had existed for a year.

Philip Bevan, the WJEC finance committee chairman, was asked about Mr German's claim that the WJEC was to blame for the problems. He said his answer was one word - "rubbish".