Bord na Mona seeks more details

THE directors of Bord na Mona have sought further information on the remuneration package of managing director Dr Eddie O'Connor, following their examination of a Price Waterhouse report.

Dr O'Connor's package, which included unvouched expenses payments, was the subject of an eight hour board meeting at the company's Newbridge, Co Kildare, head office yesterday.

The report by Price Waterhouse summarised the remuneration received by Dr O'Connor in the three years to last March.

The directors are understood to be seeking further details of payments in the last three years and information about Dr O'Connor's remuneration in previous years. Dr O'Connor has been managing director for nine years.

The additional information is to be prepared by Price Waterhouse for the next board meeting in a month's time. Among other areas, the directors want to know details of Dr O'Connor's travel over the period and the arrangements made regarding his health insurance.

The company chairman, Mr Pat Dineen, issued a statement after the meeting. He said: "Following my appointment as chairman in September last, I had concerns about certain elements of the managing director's remuneration. The board did not have any knowledge of these elements. In November, I instructed the managing director to rectify the position and I can confirm that this was done immediately."

Bord na Mona directors are believed to have expressed concern at the meeting about elements of the managing director's remuneration being agreed without their knowledge.

The directors were also unaware the company paid £15,000 in 1995 to the Revenue Commissioners in settlement of tax owed on some elements of Dr O'Connor's remuneration.

Dr O'Connor has insisted that all elements of his package were legitimate and were agreed with the previous chairman, Mr Brendan Halligan. He says he brought them to Mr Dineen's attention when he took over.

Mr Dineen said the Price Waterhouse report into Dr O'Connor's package was commissioned "to establish the facts and to enable the board to decide how best to restructure his remuneration to conform with Government guidelines".

Dr O'Connor received £141,000 in expenses in the three years to last March, of which £53,000 was paid without any receipts having to be produced. These payments were on top of his basic salary, set under the Gleeson guidelines, which totalled £187,000, or over £62,000 a year on average. When pensions, life assurance and other costs are taken into account, Dr O'Connor's package was worth between £150,000 and £200,000 a year.

Various elements of Dr O'Connor's package were queried by the Revenue Commissioners and the company paid £15,000 to the Revenue Commissioners in 1995 in settlement. The payment was part of a £240,000 settlement made with the Revenue over taxes owed primarily on expenses payments to employees.

Speaking outside the company's headquarters after the meeting, Mr Dineen said he was "perfectly happy with the current management".

"I deplore the leaking of confidential internal information which has affected the morale of our employees," he said.

Members of the Dail's main spending watchdog, the Committee on Public Accounts, have also demanded more information about Dr O'Connor's salary and expenses.

Fianna Fail TD, Mr John Ellis said it was "ridiculous" that an organisation which was being "bailed out" by the State to the tune of £120 million was not accountable to the Oireachtas or the public at large.

The Democratic Left TD, Mr Eric Byrne said, on the question of unvouched expenses, it was important to establish how public money was being spent. He asked for copies of the Price Waterhouse report into Dr O'Connor's remuneration and a discussion of the issue at the committee.