Review sought of retirement deal

The Dáil Public Accounts Committee is to write to Minister for Finance Brian Lenihan seeking changes to the terms of the “generous…

The Dáil Public Accounts Committee is to write to Minister for Finance Brian Lenihan seeking changes to the terms of the “generous” financial packages made available to the outgoing chief executives of State bodies.

The financial watchdog, which met in private session today, is calling for a number of changes after the details emerged of the retirement package agreed for the former Fás chief executive Rody Molloy.

It said it was conscious that there are “other high-profile departures from State boards and the Fás example is but one”.

“Given the likelihood of future payments, it will be calling on the Minister to review these arrangements and issue new guidelines.”

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Mr Molloy resigned earlier this year following controversy over travel expenses at the State training agency.

In a statement following its meeting in private session today, the committee said it was conscious of the review ordered by the Tánaiste into the retirement package given to Mr Molloy and that it would ask for the report of that review “in advance of dealing further with these issues”.

It said that in advance of future hearings it would require further information.

It is to write to Niall Saul, chairman of the Fás board’s audit committee in relation to his recent comments that the board was not being informed by the executive of Fas on issues.

Mr Saul told The Irish Timeslast month that overspending and serious breaches of procedure were "deliberately" kept from the board of the State body.

Mr Saul, an employers’ representative on the Fás board, said inquiries by the board have established that items that have featured in the controversy were identified at executive level but not reported to the board. He said the items “absolutely should have been reported up” to the board, but were not.

The committee said it would afford Mr Saul an opportunity to give a report to the committee on this issue.

It will also write to Greg Craig, director of corporate services at Fás, to afford him the opportunity to give evidence if he so wishes.

It said it will ask Fas for details of the internal audit investigation (comprising 23 modules) into procurement in the corporate affairs division.

The committee said it had also agreed that issues that have arisen in Fas “throw up two issues of broader concern” and that it would write to the Minister for Finance immediately calling for changes in relation to both.

These were, firstly, the terms of the package available to out-going chief executives of State bodies as set down in the Department of Finance guidelines, which allow “generous top-ups to be given to those contracts that are being terminated by boards”.

The committee also said the application of a provision regarding the disclosure of information by a board member to the relevant Minister, provided for in a Bill published by the Tanaiste this week, should apply to all State boards.

“In relation to 1 above, the Committee is concerned that there are other high-profile departures from State Boards and the FÁS example is but one. Given the likelihood of future payments, it will be calling on the Minister to review these arrangements and issue new guidelines.”

The committee said it was also of the view that ministerial representatives on State boards were “either not performing or may be prevented from performing an effective role” as the “eyes and ears of the Minister”.

It said the provisions in the new Bill on Fas should have “broad application to all State boards”.