The Arts Council may need at least another €1.5 million to replace its system for processing and approving grants, despite losing €5.3 million on a failed IT overhaul in recent years.
A new grant system was part of the original specification for the scrapped IT system, news of which has sparked a major political backlash and reignited debate over controls on public spending.
However, a department review commissioned into the controversy shows that as the Arts Council prepared to shelve the wider IT project last year, it put in another request for yet more funding for a new off-the-shelf system for managing grants termed “Option B”.
The cost to implement “Option B” was €1.48 million, with another €241,000 annual costs required over the following decade.
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In June of last year, the Arts Council made a specific request for this option to the Government Chief Information Officer and they sent a business case to the Department of Arts in August.
While the Arts Council said on Thursday that the current status of “Option B” is on hold, its statement released with its 2023 Annual Report on Thursday outlined that “the need for an upgraded IT system still exists, particularly an online application system for artists and arts organisations”.
“We remain committed to finding an alternative solution.”
The review recommended that an external appraisal be carried out of the estimated costs of proceeding with options for a new system, including the purchase of an “off-the-shelf” system.
A department spokesperson said last night that no consideration is being given to new IT projects in the Arts Council at present.
Government sources indicated that there would be strong resistance to approving any such spending for the foreseeable future.
It comes as new figures show three companies shared €4.8 million between them arising from the abandoned project.
The main technology delivery partner, named in the documents as Codec, was paid a total of €1,967,278, including VAT, for its work on the project – with €51,217 withheld.
A second company, Ergo, was paid a total of €2,107,206, including VAT, across a series of contracts, several of which were extended during the project.
A third firm, Expleo, was paid a total of €734,701 including VAT, with another €149,125 withheld by the Arts Council.
The review also outlines payments to a series of consultancy firms. CPL provided business analyst services in a contract that was signed in July 2023, and extended twice afterwards, incurring a total expenditure of €267,033, including VAT.
Grant Thornton were brought in to provide a chief information officer for the project at the start of 2023, for which it was paid €241,250, including VAT, for a one-year contract. BDO was paid €134,748, including VAT. EY provided services for which it was paid €101,844, including VAT.
Sinn Fein TD Mairéad Farrell, who chaired the Public Accounts Committee in the last Dáil and is likely to be reappointed, said that examining the Arts Council write-off would be a priority for the committee.
“The serial waste of money that we have seen from the previous government seems set to make its way into this administration. This cannot be allowed to continue. Passing the buck must stop and accountability must come in its place,” she said.
The three companies which were awarded contracts have all been awarded large public sector contracts in technology and information systems in Ireland over a long period of time.
Codec has been won contracts with at least 20 public bodies, including Government departments, agencies, universities and semi-state companies. They include the Department of Agriculture, HSE, An Post, the National Transport Authority, Tourism Ireland, EPA, TCD, University of Galway, HIQA, WRC, Pobal, the SEAI, the Central Bank and Teagasc.
Attempts to contact former minister for the arts Catherine Martin met with no response. Kevin Rafter, who served as Arts Council chair from 2019 to 2023, did not comment.
