Earlier this year executive chairman of Coimisiún na Meán Jeremy Godfrey described establishing the regulator for media and online safety as like building an aircraft while flying in it.
He said the organisation had been set up “at breakneck speed”.
The Government considered the new regulator very important.
On its establishment about 18 months ago Minister for Media Catherine Martin said it aimed at “protecting people in Ireland as we interact with one another in the online world”.
Since then Coimisiún na Meán has expanded rapidly and now has 184 staff.
But in the background, there have been tensions with Martin’s department over interpretations of the regulator’s independence and about financial and governance issues.
Section 10 of the Online Safety and Media Regulation Act 2022 says Coimisiún na Meán “shall be independent in the performance of its functions”.
In future, its budget — estimated at €50 million — will come from an industry levy. But initially, it received exchequer funding.
The department said this week “the code of practice for the governance of State bodies and the public spending code are unambiguous in setting out that any State body must be subject to sufficient oversight and accountability to ensure that it is performing effectively and using public resources efficiently in the delivery of its objectives”.
[ New media watchdog sought to spend up to €2m on furniture for Ballsbridge officesOpens in new window ]
It added it was satisfied there was clarity as to the roles and responsibilities of both organisations.
However, in a letter to department secretary general Feargal Ó Coigligh on July 15th, Godfrey said there had been “some differences of opinion” about the implications of Coimisiún na Meán’s independence and the roles and responsibilities of the two bodies in various governance matters.
“This has become a regrettable source of tension between our teams.”
He suggested a new “workable and appropriate oversight agreement”. This could achieve accountability by establishing clearly defined roles in accordance with legislation that both parties would understand and observe.
The department has also raised questions about financial information provided to it.
“Arising from our concerns regarding the provision of accurate, timely and complete financial reports, we have previously received assurances that all correct financial procedures were being followed,” said Ó Coigligh in a letter on June 26th.
However, he maintained that “the accuracy of these have now come into question” in a report carried out for Coimisiún na Meán by consultants Deloitte.
“This needs to be addressed so that assurances required under the code of practice for the governance of State bodies, and indeed relevant legislation, are credible and that the department receives information that is reliable and timely.”
Coimisiún na Meán argued it had provided the department with accurate information to support appropriate drawdown requests for exchequer funding to support its establishment and start-up costs.
It said its expenditure had been approved by the Comptroller and Auditor General.
Furthermore, since its establishment, it became clear governance and financial policies and procedures which had been in place for its smaller predecessor organisation, were not sufficient for a body with an expanded and more complex remit, it said.
Deloitte had looked at its finance function, it added, and it was “implementing improvements to our finance and governance procedures on the back of this report”. It was committed to complying with all rules governing State bodies.
The department said while Ms Martin would have been broadly aware of the engagement, the financial and governance issues addressed in the correspondence (with Coimisiún’s na Meán) were operational and as such it was appropriate that they were addressed with the executive chair by the secretary general who is the accounting officer.
The department had also acted with concern after Coimisiún na Meán tendered for up to €2 million worth of furniture for its offices in Ballsbridge, Dublin 4. However, the regulator clarified it never intended to spend more than €500,000 on furniture and the higher €2 million tender was in case of future expansion.
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