An investigation into the awarding of public relations contracts that threatened the position of the Minister for Transport, Mr Cullen, has exonerated him of wrong-doing.
The report, by former Revenue chairman Mr Dermot Quigley, found no impropriety by Mr Cullen in awarding contracts to public relations consultant Ms Monica Leech, but it recommended that more stringent procedures are introduced.
There was intense speculation that the Taoiseach, Mr Ahern, would be forced to sack his minister from Cabinet had the report found anything untoward in the hiring of Ms Leech.
Quigley report
Mr Cullen welcomed the 45-page report, saying it cleared him fully. "I have always known that I behaved properly and that the public interest was not damaged in any way," he said. "I am satisfied that the depth and rigour of this inquiry is clear and that the facts are there for all to see."
The Taoiseach, Mr Ahern, said in a statement: "I have noted the main findings in the report that the procurement of Mrs Leech's services was broadly in line with the norms and practice for procurement as reflected in the operative guidelines.
"I am satisfied that there is nothing in the report to suggest that Minister Cullen acted inappropriately in relation to the matter."
Ms Leech was allocated a PR contract in 2002 shortly after Mr Cullen was appointed to Cabinet for the first time as Minister for the Environment. Ms Leech received €800 a day for a three-day week. Mr Cullen had also appointed her as a PR consultant when he was Minister for State with responsibility for the Office of Public Works.
Mr Quigley was asked by Mr Ahern in December to inquire into the circumstances in which these contracts were awarded, whether Mr Cullen acted within standard procedure and whether the services Ms Leech or Monica Leech Communications were paid for differed in any way to those that were provided.
Today's report found that there was no breach of Government procedures by Mr Cullen, and that both the Department of the Environment and the Office of Public Works were satisfied with Ms Leech's work. Mr Quigley also found that Ms Leech's rate of pay "was not excessive for a consultancy".
However, it noted that awarding such valuable contracts to friends or political supporters could leave ministers open to criticism as they "may not least give rise to a perception of impropriety".
Mr Quigley recommended that the Department of the Taoiseach should issue new guidelines "about the need for care, and the risks that could arise, in a Minister suggesting a particular person for a contract." He also suggested the Taoiseach's approval be required before PR contracts are awarded.
The report also recommends that the Department of Finance arrange for the Government Contracts Committee to review the guidelines for engagement of consultants, particularly those relating to the use of single tendering.
The investigation found that although Mr Cullen had suggested Ms Leech be employed by the Department of the Environment, Heritage, and Local Government, the tendering process was done by the rules and there was no evidence that Mr Cullen interfered in any way.
"I am satisfied, having discussed the matter with the three officials involved in the evaluation of the bids, and with the Secretary General, that the tendering and evaluation process was conducted with integrity and fairness," the report said.
Mr Quigley noted that only two tenders were submitted. It would have been preferable if five tenders had been invited to bid for the contract, he said. "This might have resulted in a better testing of the market."
In another criticism, Mr Quigley said monitoring and recording of the work done by Ms Leech was not satisfactory. "From my examination of the files I am satisfied, however, that Mrs Leech has been extensively involved in the communications aspects of the work of the Department and in advising and briefing the Minister on communications issues."
Copies of the report have been sent to the leaders of the Opposition parties in the Dáil and lodged in the Oireachtas Library.
The Standards in Public Office Commission is also examining the awards and is considering whether an investigation is warranted under the Ethics in Public Office Act.
