OXFORDSHIRE Racial Equality Centre has been given a reprieve over its city council funding after promising to sort out alleged management problems.

Yesterday, Oxford City Council officers presented members of the council executive with a report detailing alleged mismanagement.

The report suggested the failings could lead to the withdrawal of funding from the city and county councils, worth a combined £50,000.

But Patrick Tolani, the director of the council since the end of June, said the organisation could look forward to a brighter future after he persuaded board members that it was now being managed properly.

He said: "I disputed some of the information in the report and managed to reassure councillors. We will now be working closely with them.

"My last job was working for the United Nations as an international adviser in East Timor, so I believe I have the right kind of experience to ensure that the council is run smoothly.

"Councillors have been given a false impression of what was taking place and if we work closely with them and their officers there will be no reason to withdraw funding."

The centre offers help and advice in racial harassment and discrimination cases.

The report was drawn up because the centre, which employs seven staff and costs £100,000 to run, had not met the targets set for it.

But Mr Tolani said the monitoring period between April and June was a "period of instability" for the centre when it had an interim director, and said it was not a fair reflection of the way it usually works.

"The interim director became a candidate for the job and was not selected, but she was happy that the right person got the job," he said.

"I have shown councillors our action plan and I am relieved that funding is not going to be withdrawn."

Members of the county council were also meeting this week to discuss future funding for the centre.

The report to city councillors added that targets set by the Commission for Racial Equality had not been met and that there had been four resignations from the centre's executive board since January.

City council deputy leader David Rundle said: "Taxpayers' money is being spent on a worthy cause, but we have a duty to monitor how that money is spent.

"The director of Orec is confident that he can meet our requirements - we don't want to withdraw funding unless we have to."

The board agreed that council officers would now meet the centre's management to discuss an action plan and that funding would be reinstated on a month-by-month basis.

If remedial action is not taken, then funding should be withdrawn, council leaders agreed.