Entire board of Fás should quit, says FG leader

FINE GAEL leader Enda Kenny has called for the resignation of all board members of the State training agency Fás, in the wake of the expenses controversy.

Mr Kenny said in the Dáil that the full board should "consider their positions" as Taoiseach Brian Cowen commended agency director general Rody Molloy, who had "done the honourable thing" by resigning.

Mr Molloy resigned late on Tuesday evening as pressure mounted on the organisation, with a number of investigations under way about the level of expenses of senior agency executives.

During leaders' questions Mr Kenny said the Fás board and its audit committee should have known about the excessive expenses. If they did not, they should have found out, but if they did know the extent "then they were guilty of criminal negligence".

He said "what has gone on here has been a gross abuse and reckless expenditure of public monies".

He outlined flight records for a round-the-world trip from Dublin, including Tokyo, Honolulu and San Francisco, which cost €12,000. "I have the records of a major hotel in Dublin where the booking was for 2½ weeks for €29,000. On the same day there were two banquets held in the hotel, one for €8,000 and one for €9,000."

When asked if the board members should consider their positions, Mr Cowen replied that "the Tánaiste will come to the Cabinet next week in relation to any matter that arises".

Mr Molloy was due to appear today before the Public Accounts Committee and the Fine Gael leader insisted that there should be "no agreement on severance pay or golden handshakes until there is co-operation with the Public Accounts Committee", which represented citizens and taxpayers.

"You can't just have a situation where there's a resignation and no further comment", where "this kind of profligacy went on".

Insisting that Mr Molloy had co-operated, against Opposition protest to the contrary, the Taoiseach said: "The director general tendered his resignation and I understand that the severance arrangements are in line with public sector norms. That's the normal procedure and he'd have that entitlement the same as everybody else in that position." Mr Cowen paid tribute to Mr Molloy and said: "He is an excellent public servant down the years and I have every confidence in him. And that confidence was justified. He is an honourable public servant and he did the honourable thing."

Mr Molloy "made a significant contribution to the development of services at Fás" and "no matter what size the controversy is, I don't think it's right that I would reduce that career over that period of time, the good work he has done, down to this issue."

But Mr Kenny said: "Every deputy here has people coming in to them from community employment schemes, trying to get back on Fás schemes, where at the top this appears to have been completely out of control."

The Fine Gael leader added: "We're at the start of a value revolution in Ireland. You had a situation where your predecessor saw no difference in right and wrong in accepting large sums of money across the counter. He sat in that chair and told us that these boards were appointed with friends and their appointment was based on friendship."