WALES’ public sector watchdog has revealed it is considering investigating the Welsh Government’s investment into a Cwmbran company as part of a “value for money examination”.

The Wales Audit Office has said in a letter seen by the South Wales Argus it's currently thinking about investigating the grants awarded to two different companies - Kukd.com, a Cwmbran online food firm which received a £1m grant from the Welsh Government, and games firm Oysterworld, which received a £1.42m grant from the Welsh Government.

In relation to Kukd.com, the Welsh Government is currently investigating whether conditions of awarding the £1m grant aid have been met.

A Welsh Government spokeswoman said that, whilst no wrongdoing has been found to date, no further payments will be made to online food firm Kukd.com until the matter is resolved.

In the letter from the Wales Audit Office, obtained by the Welsh Conservatives through a Freedom of Information, it says: "I can confirm that there are two businesses that we are currently considering bringing into the scope of that wider value for money examination of the Welsh Government’s support for business.

"We are aware of the Welsh Government investigation into Kukd.com.

"I should stress however, that the Auditor General has not yet taken a final decision on the scope of our proposed examination."

A Wales Audit Office spokeswoman said: “Following on from his recent report on the Welsh Government’s funding of Kancoat Ltd., the Auditor General is now minded to undertake a broader value for money examination of the Welsh Government’s support for business, including grant support.

“He has asked Wales Audit Office staff to explore bringing other examples that he has received correspondence about within the scope of that wider review.

“They will be engaging with Welsh Government officials about this matter with a view to consulting formally with the National Assembly’s Public Accounts Committee on the Auditor General’s forward programme, although he has already raised with the Committee the prospect of such a review.

“The scope and timetable for the review is yet to be confirmed and detailed planning work would commence in early 2017.”

A Welsh Government spokeswoman said: “Our Counter Fraud and Internal Audit Unit are investigating the allegations against Kukd.com and are in touch with the company to gather additional information.

“Whilst no wrongdoing has been found to date, no further payments will be made until this matter is resolved.”

Kukd.com declined to comment.