The development at Aghadachor beach in Carrigart has angered many local people amid allegations of council planning breaches.
Campaigners are now asking Failte Ireland to withdraw funding to the development at Cuan Na Ri.
And the developers – after several public denials – have now confirmed they are providing private access to the public beach there.
“Obviously as this is public money and with the current economic climate in Ireland it is important that the public purse is only open to appropriate projects.” said campaigner Frances McCarry in a letter to the head of Failte Ireland today.
She said there were six Enforcement Notices served against T&G Properties in connection with this development.
“One is for an unauthorised Basement within the Beach Activity Centre and another is for the installation of a Geo-Tube (anti erosion device) for which there was no planning permission whatsoever, the others are in connection with unpaid Council fees, landscaping issues etc,” she said.
“There is environmental damage within the SAC due to works which have been carried out.”
As part of a cross-Border crackdown on dole fraud Department of Social Welfare Inspectors also raided the site in conjunction with authorities from the North.
A number of alleged offences have been detected.
Said Frances: “There still remains the issue of T&G Properties closing off the Aghadachor Road in an attempt to privatise our beach.
She added in her letter: “They are advertising their development as having private access to the “inner beach and Tra Mor Beach”. The road in question does not solely belong to T&G Properties but ownership is shared with other land/property owners in the area.
“Now I know you say the road issue is of no interest to Failte Ireland but when you are handing out public money to a development which is not in harmony with the local community then in deed I think this is an issue which should be of interest to you.”