Some Donegal groups remain thousands of euro out of pocket since the collapse of MFG over a year ago.
MFG was a partnership company involved in implementing Leader funding for schemes in Gaeltacht regions around the country.
The limited company collapse in September last year.
It was claimed in the Seanad today, that some groups invested thousand of euro on the promise of leader funding which has still to be paid.
Sinn Fien Senator Trevor Ó Clochartaigh says this has left some companies slipping further in to debt:
He was told that the situation is still being looked at and as MFG was a limited company, addressing legacy leader funding issues was complicated.
It was confirmed however that arrangements were being finalised to administer leader funding in to the future through local development groups: