A Welsh Government spokesman explained funding was given to RYAG to buy their premises, carry out building work and also help pay the project manager.
The project has been properly monitored throughout and as soon as we were aware of a number of emerging issues with RYAG in 2011, the North Wales Coast Regeneration Area team began to work with the organisation to try to resolve these issues," he said.
It is with much regret that we note that RYAG has now entered administration.
WCVA is now a principal creditor of RYAG but our aim is to see a continuance of a youth service in Rhyl while at the same time protecting the public money invested in the building.
Shane Owen, one of the organisers and a founder of RYAG based at the Hub in Rhyl's Wellington Road, says Fareshare has made a huge difference.
For their pounds 10 a week subscription fee, RYAG can now provide plenty of good quality, free food to needy youngsters in Rhyl.