A Northern Ireland audit report has revealed an innovative Co Fermanagh horse breeding project collapsed, despite receiving a grant of more than £3 million.

The Irish Sport Horse Genetic Testing Unit was set up in 1996 as an ambitious project to breed elite performance horses.

Despite receiving £3.3 million from the Northern Ireland's Department of Agriculture, the project collapsed in 2001, when all assets were transferred to the department.

The Audit Office report found the Centre - built in 2000 at a cost of £160,000 - was not finished internally, had been built without planning permission and lacked building control certificates at the time. They were obtained retrospectively in 2004, and building control approval followed the next year.

Stock of frozen horse semen - valued at £45,000 - was also found to have been accidentally destroyed.

The report by the Controller and Auditor General, John Dowdall recommended the department completes an economic appraisal on what it now plans to do with the site. It also confirmed the department remains committed to seeing out the 25-year lease of the Necarne Estate in Co Fermanagh, where Sport Horse was based.

(JM/KMcA)