ENTERPRISE, TRADE EMPLOYMENT COMMITTEE:A FÁS executive was paid a €10,000 bonus for "exceptional" performance while his actions were investigated by the semi-State's auditors, it has emerged.
Fás director general Rody Molloy was yesterday questioned about Fás financial affairs by the Oireachtas Enterprise, Trade and Employment committee.
The official concerned, who was not named yesterday, reportedly took sick leave last week after the details of the internal audit into the awarding of advertising and other contracts were published.
Fine Gael TD Leo Varadkar said the official had been able to decide who was hired, or was given Fás contracts - including an accountancy firm that gave him personal financial advice.
Tenders were given out "without a shadow of competition", alleged the Dublin West TD, who had sought some details of the internal audit under the Freedom of Information Act.
"This person was still in his job until he went on sick leave last week. Why was he not dismissed? Why was he given a €10,000 bonus in 2005?" Mr Varadkar demanded.
Mr Molloy said the official got the bonus for "exceptional" performance for actions unconnected to events inquired into by internal auditors. He added: "I could not presume on this man's guilt. He had performed an exceptional service for the organisation that year."
In a presentation to the committee earlier, Mr Molloy said his evidence did not enjoy parliamentary privilege, so he had to be circumspect. "However, I do want to be as frank as I can be."
The Fás internal audit started after an anonymous letter was sent to then minister for enterprise, trade and employment Mary Harney in October 2004.
"In the process of investigation the audit found some possible breaches of procedure which warranted further investigation," he told the committee, chaired by Labour TD Willie Penrose.
Mr Molloy said that in dealing with the allegations and whether disciplinary action was necessary, it had been vital to act legally. "If we did not get the process and procedure right, we could have been faced with legal challenges."
A final report was sent to the Comptroller and Auditor General in February 2007, and a parallel inquiry by Fás began, which was completed in June last year. "Disciplinary action was taken against the individual involved. In accordance with normal practice we cannot divulge the details of that disciplinary action," he said.
Labour Senator Brendan Ryan asked whether the procedural breaches discovered by the auditors would ever have been discovered had the anonymous letter not been sent to Ms Harney.
Mr Molloy said he had "no complaint" with the Fás internal auditors, though some changes are being made to the semi-State auditing rules as a result, in line with normal business practices.
Mr Molloy told Fine Gael Meath TD Damien English he had "seen nothing conclusive" yet that would have justified the official's sacking, but that could change once the Garda investigation was complete.
