Investigation into RTÉ’s finances expected to focus on ‘slush fund’

An external investigation into RTÉ’s finances would be broadened to include payments made under the controversial barter account, under plans being considered by the RTÉ board.

The account, which was labelled a “slush fund” during Oireachtas committee hearings this week, has seen up to €1.25 million in payments pass through it in the past 10 years, including spending on client trips to the Rugby World Cup, the Champions League final, and for 10-year tickets from the Irish Rugby Football Union (IRFU).

Those client perks cost RTÉ €275,000, paid through a barter account which at the time was not overseen by RTÉ’s finance department. The organisation’s chairwoman, Siún Ní Raghallaigh, called this “outrageous” on Thursday.

Grant Thornton, the consultancy firm, is close to completing the second stage of its investigation into financial matters at the national broadcaster after controversy erupted around €345,000 in hidden payments to presenter Ryan Tubridy.

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This phase, which is independently evaluating the contracts of other top earners at RTÉ and seeking to establish facts around €120,000 paid to Mr Tubridy in 2017-2019, is expected in the coming days. The firm is then expected to receive a renewed brief, with spending in the barter account seen as the most likely avenue to be pursued next.

At the Public Accounts Committee (PAC) on Thursday, RTÉ board member and chairwoman of its Audit and Risk Committee Anne O’Leary told Fianna Fáil TD James O’Connor that “when [Grant Thornton] finish this one we have another job of work for them to do”.

A spokeswoman for the RTÉ board said it was “actively considering what other matters may be included in Grant Thornton’s scope of work”.

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It comes amid increased focus on other areas of spending in RTÉ following the controversy. On Friday, the Oireachtas media committee wrote to RTÉ seeking “full detail in relation to expenditure” on Toy Show – The Musical, an ill-fated production which was a commercial flop.

Political focus on the controversy will continue this weekend. Minister for Media Catherine Martin has requested talks in the coming days with Ms Ní Raghallaigh and incoming director general Kevin Bakhurst. She is expected to raise the Government’s external review of governance at RTÉ, plans for reconstitution of the executive board, the Grant Thornton report and engagement with RTÉ staff. Terms of reference for the review are expected to be shared with the Cabinet next Tuesday.

The media committee is to summon RTÉ executives for another session next Wednesday, and has agreed in principle to invite Mr Tubridy and his agent Noel Kelly before it. Taoiseach Leo Varadkar on Friday suggested accounting rules and company law may have been breached at the station. RTÉ has been advised that what occurred did not constitute fraud, but Garda Commissioner Drew Harris said the force would examine any aspects of the controversy if required to do so.

[ RTÉ payments controversy: Who did what and when? ]

On Friday, the NUJ’s Dublin Broadcasting branch stopped short of issuing a motion of no confidence in RTÉ’s executive board, but the union’s organiser, Séamus Dooley, warned that employment and services must be protected by the Government.

The PAC was on Friday preparing for a legal battle with RTÉ over a key document relating to the station’s commitment to underwrite the deal guaranteeing €75,000 annually for Mr Tubridy. The committee is examining whether it can compel RTÉ to divulge the document, which is a record of a meeting between Mr Tubridy’s agent, Noel Kelly, and former director general Ms Forbes, during which the station has said Ms Forbes gave verbal agreement to the deal.