Posible conflict of interest made OPW quit stadium

The Office of Public Works withdrew from its role as project manager of Campus and Sports Stadium Ireland because of concerns over equal treatment for potential tenders, according to OPW chairman, Mr Barry Murphy.

Addressing the Dáil Committee on Public Accounts yesterday, Mr Murphy, said he was specifically concerned about Mr Paddy Teahon's handling of issues where there was a conflict of interest.

He also disagreed with Mr Teahon, then executive director of Stadium Ireland, on who would be in charge of the OPW personnel involved in the project.

Mr Murphy said the OPW had sought absolute clarity about its position with the stadium project because it was concerned at decisions being taken at Abbotstown.

These concerns were referred by memo to the Minister of State at the Department of Finance, Mr Martin Cullen, on February 15th, 2001. Presented at the meeting yesterday, the memo indicated concern that Mr Teahon had initially declared what the OPW said was a "personal association" with two of the consortia expressing interest in building the aquatic centre.

In one case, Mr Teahon had concluded that he had no conflict of interest, while in the second, the company in which Mr Teahon had declared a personal association withdrew from the consortium.

However, the OPW was not satisfied and "felt some of the things which were being done were not being done as we would do them normally", Mr Murphy said.

He also took the view that the OPW should report as it always did - to the Government through the relevant Minister, currently Mr Cullen. Mr Murphy rejected a suggestion the OPW would have been slower and more cumbersome in its approach than a private sector company. The State agency was involved in projects worth hundreds of millions of euro and expedited these projects as fast as the private sector, he maintained.

"We were making every conceivable effort to carry out our duties as project manager (but) we needed a formal agreement with CSID as to our duties," said Mr Murphy, who added that no agreement was reached.

Ultimately, the OPW was left with three alternatives: engage in an open competition to manage the project, a move which would have been effectively bidding for its own job but which would have clarified the role and responsibilities of project managers; withdraw from the project; or withdraw and adopt a role as an independent adviser to the Minister for Tourism and Sport, Dr McDaid. It was decided to opt for the role as adviser to Dr McDaid.

Responding, Mr Teahon said he was never against the involvement of the OPW and positively wanted the office involved. However, he insisted that OPW personnel should have been on secondment to the CSID and, as such, should report to the CSID board. He said the OPW "made their decision (to withdraw) on the basis that they were not prepared to second people".