The co-director of CfMHaS from 2012, Prof Rob Poole, was also honorary clinical psychiatrist at Betsi under the agreement, until his retirement in October 2025.
Poole said he did not know the Betsi review had happened, but considered the findings “grossly inaccurate”.
“All of my extensive research is of direct benefit to the population of Wales, including the externally funded work in south Asia which we are now replicating in Wales.”
Poole said he did not recognise the £4m figure in the Betsi report and that CfMHaS generated income with new staff paid for from other funding.
According to Betsi’s internal report, improvements to the current arrangements have been proposed, but do not go far enough or consider other possible partnerships, the auditors said.
Geoff Ryall-Harvey, of health watchdog Llais, said the matter should be dealt with by an outside body.
“The [Betsi] report doesn’t assign blame to individuals, but it does speak of serious financial mismanagement,” he said.
“So nobody who was involved with that financial mismanagement should be involved in the solutions.
“There needs to be an external investigation. I think the time for internal action has gone.”
The health board’s internal report will be considered by its audit committee.
Chief executive Carol Shillabeer said of the commissioning of work at CfMHaS: “It is important to note that there is no suggestion of improper conduct.”
She said the review was requested to ensure appropriate governance arrangements were in place, “as is good practice”.
“In recent years the health board has adopted an increasingly robust approach to commissioning arrangements, which we are determined to strengthen further,” Shillabeer said.
A Bangor University spokesperson said CfMHaS acknowledged “the importance of robust and transparent governance”.
They said the research centre did not directly participate in the internal Betsi review process.
“The centre remains committed to working constructively with the health board as they continue to conduct further assurance activities,” the spokesperson said.
Due to concerns about the health board’s wider performance the Welsh government said this week it would take on a more direct role in Betsi.
Responding to Betsi’s internal report into CfMHaS a spokesperson said: “Acting on the findings of this internal audit is a matter for the health board.
“In doing so we expect to see improvements in governance arrangements for this funding.”
