US partner not to repay State €40m over failed digital plan

MediaLab Europe: The US partner in a failed research project that cost the taxpayer €40 million is unlikely to have to repay the State funding it received for taking part.

The report of the Comptroller and Auditor General found the Government-backed MediaLab Europe (MLE), which was wound up last February, cost the Exchequer €40.5 million.

MLE was a collaboration between the State and Boston-based Massachusetts Institute of Technology (MIT) to set up a university-level research and education centre focused on digital media.

It was intended to encourage research and development in digital media in the Republic.

It was supposed to attract support from the private sector, but failed. After the lab was placed in liquidation last spring, some Government sources suggested the Exchequer might be able to claw back some or all of the €10.6 million it gave to MIT for its participation in the project.

The Department of Communications, Marine and Natural Resources, which took over responsibility for MLE, argued that MIT had not delivered on all its obligations laid down in its contracts with the State.

However, the C&AG's report makes it clear the US institute had met all its obligations under the the original contract.

Government sources agreed yesterday that in those circumstances, it would not be possible to get MIT to return the cash it was given to fund its role in MediaLab.

However, the report says MIT's unwillingness to fund a proposed restructuring and strategic plan designed to rescue MLE in 2004 was "disappointing".