FÁS PAID William Fry solicitors €232,595 in 2010 for advice on how to handle the aftermath of the controversy that hit the State training authority in 2008.
The law firm clocked up a further €14,499 in fees for advice in the same area in the first two months of this year.
Documents seen by The Irish Timesshow that in the period from May 2005 to February 2011, the firm received fees of €425,846 for advice to Fás on matters connected with and following on from internal audit reports that raised serious questions about spending controls in its public affairs division and elsewhere.
The figures include VAT at 21 per cent and the 8 per cent cut in professional fees introduced by the Government in 2009. Some of the invoices include barristers’ fees. In 2008, after it had become aware of an internal audit report into the Fás corporate affairs division, the Dáil Public Accounts Committee began hearings into spending controls at the authority.
Controversy over his handling of foreign travel and other expenditures led to the resignation of the director general, Rody Molloy. The then tánaiste and minister for enterprise, trade and employment, Mary Coughlan, agreed an enhancement of his pension worth an estimated €1.4 million prior to his resignation. The Fás board then considered the content of a number of internal audit reports and decided to appoint a consultant to examine them and to advise on whether any employees had questions to answer, or deserved any sanctions.
The board appointed management consultant Ignatius Lynam to conduct this work in February 2010 and it is understood his fees to the end of March last were €150,000.
Meanwhile, three partners from Mazars were appointed by Fás to examine a series of complaints by the former head of the corporate affairs division, Greg Craig, who was unhappy about how he had been treated by the authority during the height of the crisis.
The Mazars report cost €112,000 and found that a number of Mr Craig’s complaints were justified. The Lynam reports found that a number of staff had questions to answer.
Recently Mr Craig was told his position in the authority was to be terminated. However, he has secured a temporary injunction from the High Court, which is due to resume its consideration of the matter today. Fás is defending its position in the case. Fás director general Paul O’Toole is due before the Public Accounts Committee this morning, where he is expected to be asked about the confidential Mazars report.
A spokesman for Fás said he could not comment on the level of fees paid to William Fry and to the consultants.There was no comment from William Fry.