A UDA-linked conflict transformation scheme that faced a funding ban by Social Development Minister Margaret Ritchie has nevertheless received nearly £400,000 from her department, it has emerged.

The SDLP minister pledged to stop funding to the project last October after loyalists failed to obey her demands for weapons decommissioning.

But an ongoing High Court challenge of her decision has forced the minister to continue funding the scheme and it has been confirmed £382,475 has been paid in the last year.

Sinn Fein Assembly member Paul Maskey said people would be shocked to hear of the funding of the Conflict Transformation Initiative (CTI).

Mr Maskey said: “Last year in a great fanfare Minister Ritchie announced that she had withdrawn funding from the UDA linked CTI project.

“At the time Sinn Fein and all of the other Executive parties publicly supported her position but were fearful that the approach she adopted in not seeking Executive cover left her decision open to challenge.

“Unfortunately it now seems that this position has been borne out. Since her announcement last year almost £400,000 of taxpayers’ money has been pumped into this project away from the glare of the media.

“I am quite sure that the vast majority of ordinary people will be shocked at this revelation.”

But a spokesman for the Ms Ritchie said: “The minister had hoped this matter would be resolved in the courts last November. The constant delays are not of her making. The legal process can be long and drawn out and the minister has absolutely no power to intervene in the process.

"Following a ruling by the courts, we have continued to fund the project and have maintained close monitoring of its work. We cannot comment on the detail of the case as it is currently before the courts. After a number of postponements, the hearing is now scheduled for early November.”