Questions raised about awarding of water meter contract

Questions have been raised in the Dáil about the procedures used in awarding contracts for the installation of water meters and if they met European Union procurement rules.

Independent TD Catherine Murphy said in the Dáil she had asked specific parliamentary questions, one of which was “flatly refused” and the reply to another question was “so anaemic it was a non-answer”.

The questions referred to the circumstances surrounding the awarding of the Irish Water metering contracts.

Taoiseach Enda Kenny said he did not have the answers to her specific questions about the details of contracts but he would get them from Irish Water.

During Leaders' Questions Ms Murphy asked how the company, Millington, was able to acquire Siteserv and thus GMC/ Sierra "at a significantly reduced cost, from Irish Bank Resolution Corporation" (IBRC). She said the State lost €105 million in the deal.

She asked how the procurement process had satisfied EU rules and why IBRC had accepted a bid from businessman Denis O’Brien’s company Millington for Siteserv when it was the lowest of the bids and resulted in the €105 million loss.

Contract application

She said GMC/Sierra had not come into existence until July 15th, 2013, two weeks after the closing date for contract applications, but had been awarded a contract.

This led her to ask: “How could a company that did not satisfy the requirement to have a tax clearance certificate be considered for the contract?”

When Mr Kenny said he would get the answers from Irish Water, Ms Murphy asked him to put them on the public record.

She said EU rules applied to these issues and it was “critical that everything be above board. Otherwise an entire set of other issues will dog this company if it survives.”

Mr Kenny said the only discussions at the Cabinet subcommittee meetings was that regional contracts would be awarded for the installation of meters with a requirement that 25 per cent of jobs went to those on the live register.

He said he would have the questions transmitted to Irish Water. He hoped “we do not get a watery reply”, he said, adding that he would see the detail Ms Murphy asked for was provided.