THE picture painted yesterday for the Committee on State Sponsored Bodies of the recent events at Bord na is of an internal administrative matter gone horribly wrong. In the absence of the man at the centre of the 12 week saga, former managing director Dr Eddie O'Connor, the picture went undisputed.
Dr O'Connor declined to comment last night on the statements made to the committee by the current chairman, Mr Pat Dineen and his predecessor, Mr Brendan Halligan. He also did not comment on the revelation to the committee by the Secretary of the Department of Transport, Energy and Communications, Mr John Loughrey and his Minister, Mr Lowry, of the details of the confidential settlement package agreed last week. Dr O'Connor indicated that he now wanted to draw a veil over his involvement in the company.
He had said as much in his letter to the committee informing it that he would not be attending. He also reiterated his view that his remuneration package had not breached Government guidelines in any way.
The version of events outlined yesterday contradicts the suggestion that there was some "hidden agenda" involved in the appointment of Mr Dineen as chairman last September, which had the removal of Dr O'Connor as a central feature.
Mr Loughrey told the committee that, although he subsequently became aware of internal tensions in the company, the Department was unaware of them until after Mr Dineen's appointment. He said the Department relied on the written confirmation it received each year from Mr Halligan that Dr O'Connor's remuneration complied with the guidelines. Mr Halligan admitted yesterday that he had been mistaken in this view.
Mr Loughrey said senior management members at the company had been concerned about Dr O'Connor's arrangement with Mr Halligan for some time. It had been an issue at the time of the renewal of Dr O'Connor contract four years previously, but had not been communicated to the board or the Department, he said.
These concerns were communicated to the new chairman, through the chairman of the board's remuneration committee, Mr Sean Burke, at the end of last November, the Oireachtas committee was told yesterday by Mr Dineen.
The chairman said that he had wished to deal with the matter internally and he was obliged as chairman of the company to regularise and clarify the situation, which he felt breached Government guidelines.
Mr Dineen said he immediately put a stop to some elements of it, such as the unvouched expenses paid in cash. "It was in the course of that clarification and in the course of that attempt to regularise Dr O'Connor's position that it became clear that there was a dispute between Dr O'Connor and other officers of the board as to his entitlement to certain payments and expenses, Mr Dineen said.
Mr Dineen said he was also obliged to inform the Secretary of the Department of the situation. Mr Loughrey told the committee that he sought a report from the company's auditors, Price Waterhouse, on Dr O'Connor's remuneration. The report was to be used as a basis for regularising his arrangements, said Mr Dineen.
The board dispute, together with the leaking of the Price Waterhouse report and a subsequent more comprehensive report, put paid to any attempt to resolve the matter internally. After numerous meetings to discuss Dr O'Connor's remuneration, the board, with the exception of Dr O'Connor, agreed that the package breached guidelines and informed the Minister.
The issue was ultimately resolved by Dr O'Connor's resignation last week, following his suspension by the Government. However, the question of who leaked the documents remains unresolved, with Mr Loughrey, Mr Dineen and the Minister all denying any involvement yesterday.
