FINANCIAL CONTROLS:A REVIEW of the financial controls operated by the Dublin Docklands Development Authority (DDDA) found a "loose culture" where senior managers over-rode the procedures they were expected to follow.
Fine Gael released copies of reports dealing with the authority’s financial controls and its planning structures and functions yesterday.
A report by public accountant Ray King into finance, particularly procurement and payroll, found a loose culture in relation to internal systems of financial control.
“While the authority has in place a system of internal controls, in some instances the system was over-ridden at senior management level,” the report says.
“In some areas, notably salary increases and the renewal of staff contracts, there was an absence of systems, with authority for transactions resting entirely with the chief executive.
“There was no oversight of the chief executive in his execution of these responsibilities, partly because the chief executive did not bring these matters to the board’s attention.”
It adds: “In other areas, notably project costs, there were extensive systems for cost control but these systems were not implemented in practice.”
The chief executive during the time covered by the reports was Paul Maloney, who has since left the organisation.
During that period, the authority joined developers Bernard McNamara, Derek Quinlan and a group of private investors in a consortium, Becbay, which agreed to buy the Irish Glass Bottle site in Ringsend Dublin, from South Wharf, a spin-off of the old Ardagh Glass plc.
Anglo Irish Bank loaned almost €290 million to Becbay. The bank’s then chairman, Seán FitzPatrick, was on the DDDA board at the time, while Lar Bradshaw, one of the bank’s non-executive directors, was chairman of the authority.
They attended the DDDA board meeting where the decision to approve the Becbay deal was made but played no part in any executive decision making.
The authority is now paying €5 million a year in interest as a result of the deal and has to operate at a loss as a result.
The financial report warns that it may have to exceed its current Government-approved borrowing limits of €127 million as a result of its financial problems.
The report also finds that the authority paid little attention to value-for-money considerations in its work.
The authority last year changed the “composition and approach” of its management, and the report acknowledges that there has been a significant change in culture at the authority.
DDDA Board Members
2002-2007
Lar Bradshaw: Chairman.
Seán FitzPatrick: Anglo Irish Bank.
Mary Moylan: Department of the Environment Heritage and Local Government.
Declan McCourt: OHM Group.
Angela Cavendish:
Alexsam Corporate
Corporate Finance.
Donall Curtin:
Byrne Curtin Kelly.
Niamh O’Sullivan: Arup Consulting Engineers.
Joan O’Connor:
Interactive Project Managers.
2007 to 2009
Donal O’Connor: Chairman – PriceWaterhouse
Niall Coveney: Ernst Young
Mark Griffin: Department of the Environment, Heritage and Local Government.
Donall Curtin: Byrne Curtin Kelly.
Brendan Malone:
Malone Power Co.
Catherine Mullarkey:
Property consultant.
Sheila O’Donnell:
O’Donnell Tuomey.
Niamh O’Sullivan:
Arup Consulting Engineers.
