Galway Bay fm newsroom - The founders of the arthouse cinema in the city are co-operating with an investigation by the Charities Regulator.
According to today's Irish Times, an inspector was appointed after an initial examination late last year.
The Charities Regulator says the investigation relates to issues over the proper treatment of the charity's assets in a commercial arrangement proposed with a new investor.
The watchdog says the opening of such a statutory investigation does not mean there has been a finding of wrongdoing.
Dublin-based Element Pictures has taken over project management at the Picture Palace at the Spanish Arch.
Lelia Doolan from Solas - Galway Picture Palace says they have only ever intended to provide Galway with a 'great arthouse cinema'.
The project has encountered several difficulties and delays since it was first mooted in 2004.
However the new contractors are expected to complete a fit-out of the building from next week.
