A civil servant is likely to replace one of CIE's most senior executives on its board next month. This follows the failure of the Minister for Public Enterprise, Ms O'Rourke, to reappoint as directors the group's chief executive, Mr Michael McDonnell, and its chief financial officer, Mr Jim Cullen, when their board memberships lapsed last month.

It is thought the preferred candidate to replace either figure is Mr Pat Mangan, assistant secretary, at the public transport and road haulage divisions at the Department of Public Enter prise.

Ms O'Rourke believed the £2.2 billion (€2.8 billion) investment in public transport merited the involvement of a senior civil servant, her spokesman said yesterday.

Recent reports by independent consultants cast doubt on the group's ability to deliver on substantial investment programmes. ?????????????E's services.

The Minister would soon consult with the CIE group's chairman, Dr John Lynch, on appointments to the board, the spokesman said.

A contrary view was that the decision may be delayed because of Mr McDonnell's legal action against the State over the terms of an improved remuneration package. That High Court case is scheduled to be heard next May.

In an unusual arrangement, Dr Lynch works full-time as executive-chairman at the troubled transport group.

Usually when a State company has a chief executive a chairman works part-time as non-executive director.

Although Ms O'Rourke and Mr McDonnell are not close, her spokesman said the arrangement does not reflect a lack of confidence in the chief executive. Mr McDonnell was a senior civil servant in the Minister's Department before his appointment to head CIE in 1995.

His court action surrounds the terms of a contract agreed with Dr Lynch's predecessor, Mr Brian Joyce, before the latter resigned last March in a row with Ms O'Rourke over the group's autonomy.

The High Court ruled last month that Mr McDonnell should not benefit from the disputed contract - which raises his salary to £193,000 from £100,000 - in advance of the hearing of the action in May.