A REPORT by the State’s financial watchdog into Bord na gCon has identified failings and weakness in corporate governance, the awarding of contracts and its management of capital projects over a period of a decade to 2007.
The issues raised included: almost €4 million paid for litigation; the payment of €150,000 for a generator that was 20 years old; a practice where security personnel in Shelbourne Park were paid in cash, and a senior manager claiming travel expenses for a car supplied to him for free.
A special report compiled by the former comptroller and auditor general (CAG), John Purcell, says the greyhound board’s activities experienced massive growth in that period but concludes that the “drive to enhance its product was not always matched by a governance regime designed to administer the organisation and its funds to optimum effect”.
However, despite the shortcomings, Mr Purcell’s overall conclusion is that in material respects “the funds of the organisation were properly applied”.
The investigation looked at several issues raised by the Dalton Report that inquired into the circumstances leading to the dismissal of chief executive Aidan Tynan by the board of Bord na gCon, then chaired by Paschal Taggart. The report finds that some €3.9 million was paid in legal fees. €1.5 million was paid out to underbidders in tender contracts for tote services and for catering services at Tralee.
Another €1.5 million was paid out in severance fees and legal costs for three former senior employees, including Mr Tynan. His case in January 2006 cost a total of €561,890, including legal fees. Mr Taggart stood over this practice. “He viewed terminations as a normal part of business operations,” stated Mr Purcell.
Mr Purcell is critical of the manner in which considerable authority for the redevelopment of Shelbourne Park was transferred in November 2000 to a person, described as a building overseer, who had been taken on the previous April to manage security at the track. No clear contract existed for his role.
The circumstance had arisen because the managing director of Shelbourne Park had become ill, but the CAG found that inadequate controls were in place.
“The involvement of the overseer in site meetings and the authorisation of works effectively meant that for certain periods, control was neither being exercised by the organs of Bord na gCon nor Shelbourne Greyhound Stadium Ltd.”
It was also decided to seek tenders for a power generator for Shelbourne Park. The same building overseer instructed the consultants to add a company to the tender list. The company won the contract.
It subsequently emerged that the overseer was a director of the company and that the generator, which cost €124,704, was 20 years old. The board sought legal advice but was told it would be futile to initiate a Garda investigation.
Mr Purcell also discovered irregular arrangements for security from 2000, a situation that was not fully regularised until late 2007. At one juncture, cheques were issued to a catering company who cashed them for individual security personnel.
Two Shelbourne Park managers were provided free cars by a garage. When it emerged that one also claimed mileage expenses, an issue arose over tax. The board paid €11,333 to the Revenue and recouped it from the employee.
