The Northern Ireland Office has indicated that cash for a republican neighbourhood justice scheme is likely to be approved — in spite of SDLP claims that the funding will be based on a flawed report.

A NIO spokesman said Security Minister Paul Goggins is satisfied that the Criminal Justice Inspector's report on the restorative justice scheme is "unambiguous".

He said the process to officially accredit the group, Community Restorative Justice Ireland (CRJI), will continue.

The group has previously sought £400,000 in public money, but was turned down because it did not support the police at the time.

Restorative justice groups are meant to provide an alternative to standard punishments by confronting perpetrators with victims and other effects of their crimes.

In Northern Ireland, they have their roots in efforts to end punishment attacks, but the Independent Monitoring Commission warned two years ago they could be used as a new mechanism for paramilitary control.

Earlier this month SDLP MLA Alex Attwood wrote to Mr Goggins to criticise the report on CRJI. When it was published last month, Mr Goggins said the report cleared the way for CRJI to seek official approval and funding.

But Mr Attwood said the report wrongly identified that CRJI had appointed two complaints officers. He said only one had been appointed and had not had any discussions with the group about procedures for nine months.

And he disputed a finding that the group is passing cases to the PSNI.

The NIO said Mr Goggins "has received a letter from Alex Atwood on recent CJNI inspection of CRJI."

But a spokesman added: "The Minister is satisfied that the Chief Inspector of Criminal Justice and his staff have been unambiguous in inspecting Community Restorative Justice Ireland (CRJI) schemes against the very high standards of the published Government Protocol. Inspection schemes go forward to the next stage of the process where an independent panel determines, on a case by case basis, if individuals meet the exacting standards required for those working in an accredited scheme. This process is on-going."

Mr Attwood said he was not surprised by the NIO's response.

"Any decision to accredit and fund is a political one driven by the need of republicans at a time when the DUP clearly have their measure.

“The NIO has been given a mountain of evidence as to why the Criminal Justice Inspector's report is flawed on many issues, including complaints. To accredit and fund Restorative Justice Ireland flies in the face of this evidence."