The British government has confirmed it is to give a group connected to the UDA over £1m to steer loyalist communities away from violence and criminality.
A project run by the Ulster Political Research Group, which has close ties to the UDA, is to receive funding of £400,000 a year for the next three years.
The British government hopes the money will be used to end paramilitary influence and control over loyalist communities.
Under the scheme, the UPRG will employ 12 people across Northern Ireland to enable loyalist communities to access social and economic regeneration funds.