Chairman of spending inquiry into Fás resigns

THE CHAIRMAN of a steering committee overseeing a value-for-money study of a multimillion euro in-service training scheme operated…

THE CHAIRMAN of a steering committee overseeing a value-for-money study of a multimillion euro in-service training scheme operated by Fás resigned because of uphappiness with how its work was being treated, according to an informed source, writes COLM KEENAPublic Affairs Correspondent

A spokeswoman for the Department of Enterprise, Trade and Employment, which has responsibility for Fás, confirmed that there had been a change in the chairing of the committee but could not say what the reason for this was.

“The report is expected to be completed shortly,” she said.

The report is understood to be critical of aspects of the management by Fás of the programme, which received large amounts of funding from the European Social Fund. A Fás board subcommittee had responsibility for overseeing the programme. Value-for-money reviews are laid before the Oireachtas.

READ MORE

Last year, Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan was asked about the review of the competency development programme by Fine Gael TD Leo Varadkar.

“It is expected that the review will be completed in the first quarter of next year,” she said.

The programme was mentioned in a recent report by Comptroller Auditor General John Buckley concerning certain expenditure issues at Fás.

The content of that report will be considered when it comes before the Dáil Committee on Public Accounts (PAC) this week.

In the report the CAG writes: “In February 2004, following a request from the department, the [former] director general [Rody Molloy] wrote to the department attaching a submission for increased expenditure and activity under measure 18.33.

“It noted that projections by the department suggested that the department was likely to be underspent in regard to funding from the European Social Fund, and that Fás had been asked if it could increase its level of activity to draw down the money over the remainder of the period.

“In a later submission, dated September 2004, the figure likely to be underspent was put at €60 million over the period 2000-2008.

“By September 2004, Fás had submitted a proposal as to how it would spend €60 million in 2005-2008.”

The programme involved in-service training courses being run by organisations other than Fás, including employers’ and trade union organisations represented on the Fás board.

The secretary general of the Department of Enterprise, Trade and Employment, Seán Gorman, Fás chairman Peter McLoone and the recently appointed director general of Fás, Paul O’Toole, are scheduled to appear before the PAC this Thursday.

Ms Coughlan said last week that her department had signed off on a new Bill that will allow for the creation of a new board at Fás, and that she intended to bring the Bill to Cabinet for approval this week.

The Fás board comprises representatives from Ms Coughlan’s department and from the Department of Finance, as well as representatives from various social partner organisations.