The internal audit unit at Fás has asked the Garda fraud squad to examine claims that one of its suppliers did not deliver services for which it received up to €30,000 from the State training authority.
The audit unit's concern about the contracts with the supplier emerged during a separate investigation into anonymous allegations of impropriety which were made last year against an official in Fás.
In recent weeks, after an inquiry that continued for several months, the unit cleared the official of any impropriety.
"Investigations and examinations have been undertaken into allegations made in an anonymous letter received by Fás. No evidence was found to substantiate the specific allegations made," said Gerry Pyke, the secretary of Fás. "In the course of the investigations, a number of other issues arose and these are currently being investigated."
Officials in the audit unit raised such issues at a meeting with officers from the Garda Bureau of Fraud Investigation in recent weeks. However, it is not yet known whether the force has started a formal investigation or whether it plans one.
The issues centre on the level of services provided by the supplier. Fás is believed to have paid sums of €20,000-€30,000 for the work.
The questions about the level of service actually provided by the supplier were raised by a separate company that was engaged by Fás to monitor the work carried out by the supplier. These emerged during the course of the investigation that followed receipt of the anonymous letter last October.
However, it is understood that the monitoring company declined to make a formal report to Fás about its concerns. According to sources, the monitoring company said it could not do so because it was a rival of the supplier and was in competition with it for some business.
Because it had no formal report, the internal audit unit was unable to raise the particular concerns about the contracts with the supplier.
However, the monitoring company indicated that it would be obliged to provide a report in the event of a Garda investigation.
