WI-FI firm Digital City is set to scoop another slice of taxpayer cash, the Adver can reveal.

The council-backed company has won grant funding for research and development work on the Swindon wi-fi network, along with another firm called aQovia, who own 30 per cent of Digital City’s shares.

The “gobsmacking” pledge of more cash comes despite Digital City’s failure to deliver a wi-fi network in Swindon, and lagging behind on repayments of council taxpayers’ cash.

The grant was actually approved last autumn – but it has not come to light until now.

Long-time wi-fi critic Des Morgan, a 59-year-old retired company director from Caraway Drive, said: “Digital City came to Swindon Borough Council on February 7, and said they’re looking for funding, and weren’t able to pay their interest payments (to the council).

“They never mentioned anything about this project or having match funding, so it’s quite peculiar.

“It’s just amazing. I’m gobsmacked.

“It’s good news – it shows money is being made available to Digital City.

“I’m just at a loss as to why this wasn’t revealed, because it would be a very, very positive message to send.”

But he also said: “Why aren’t they paying their £1,000-a-month interest to the council? You’d have thought they’d do that as a priority.”

The grant cash is from Swindon-based government quango, the Technology Strategy Board (TSB).

The TSB will give £99,000 to Digital City and £232,000 to aQovia over the next 20 months – £331,000 in total.

It will fund research, starting this month, into software and programmes which can be used on the wi-fi network.

If successful, these products can then be sold on to others. When asked why it is giving cash to controversial firm Digital City, the TSB said its money will only be released in quarterly chunks – and only if Digital City hits its research targets.

A TSB spokesman also said: “The offer of funding is conditional on financial compliance and due diligence and that hasn’t yet been finished.

“Whether the offer of funding would be withdrawn, I couldn’t speculate.”

The £331,000 grant is “match funding” for another £332,000 which the companies have come up with themselves.

But it is unclear how they managed to secure this £332,000, since Digital City has so far been unable to provide internet access to the town or repay a £400,000 council loan.

No-one from aQovia, Digital City, or Garry Perkins, who is also a Digital City director and councillor in charge of the scheme, could yesterday be contacted.