Fabrications found by Welsh chap in the papers (7)
I believe the answer is:
dailies
'papers' is the definition.
(daily is a kind of paper)
'fabrications found by welsh chap' is the wordplay.
'fabrications' becomes 'lies' (I've seen this before).
'found by' is a charade indicator (letters next to each other).
'welsh chap' becomes 'Dai' (common Welsh name).
'lies' put after 'dai' is 'DAILIES'.
'in the' acts as a link.
(Other definitions for dailies that I've seen before include "employed in cleaning?" , "Newspapers" , "Rags" .)