Varadkar steers clear of legal dispute between IDA and Connect Ireland

Tánaiste Leo Varadkar, who is also Minister for Enterprise, Trade and Employment, has so far declined to intervene in a legal dispute between inward investment agency IDA Ireland and Connect Ireland, a group set up by tech entrepreneur Terry Clune to attract investment to Ireland.

IDA and Connect Ireland, which has a contract to produce investment leads, are involved in an arbitration process over allegations made by Mr Clune’s group about how the State agency dealt with certain jobs leads it produced. The arbitrator has made a number of findings in the case, some of which have gone against the IDA, while a finding of costs was also made against the State agency.

The arbitration process is now moving on to a separate “quantum” phase, to ascertain any financial awards that might be made. A counterclaim by the IDA is also understood to be in train.

It is believed that transcripts of some of the evidence from the arbitration hearings, in which Connect Ireland alleges jobs leads it produced were subsequently claimed by the IDA as its own, were circulated to members of the board of the State agency, including assistant secretary of the Department of Enterprise, Trade and Employment, Declan Hughes.

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It is understood that Connect Ireland also wrote twice to Mr Varadkar this month urging him to intervene in the matter. So far, he has declined.

The story first appeared in the Sunday Independent.

The department told The Irish Times at the weekend that the Minister would not comment on the arbitration process as it was ongoing. It is understood that the Tánaiste has been appraised of details of some of the allegations in the case but the department said he has not seen any of the transcripts that have been circulated.

The relationship between Connect Ireland and IDA has its roots in an initiative that started under former taoiseach Enda Kenny during the recovery phase that followed the post Celtic Tiger crash. The Government at the time sought ideas from the private sector on how to reboot Ireland’s economy.

Mr Clune set up Connect Ireland to harness the power of the Irish diaspora to generate investment leads, and it entered a contract with the IDA. The two sides subsequently fell out and have been in arbitration for more than four years.

IDA said last night “it is wholly inappropriate” for anyone involved in the arbitration to share correspondence from the process. It also said there was “no connection whatsoever” between the arbitration and the decision of IDA chief executive Martin Shanahan to leave his post last week.

Mr Shanahan announced he would leave during the summer but he was expected to remain in his post until January. He left last week for a period of gardening leave before joining Grant Thornton as a partner.