A FILE has been sent to the Director of Public Prosecutions on an investigation into nugatory (worthless) expenditure of some €600,000 by State training agency Fás, it emerged last night.
This follows a highly critical report earlier this month by the Comptroller Auditor General John Buckley into Fás advertising and promotional spending in 2002-2008 when a total of €48 million was spent .
There have been two separate Garda investigations carried out into expenditure at Fás, an informed source told The Irish Times.
One investigation, which relates to nugatory (worthless) expenditure, has advanced to DPP stage in the last fortnight, the source said.
This case does not relate to more than €600,000 which was spent on producing TV advertisements that were not broadcast.
The other investigation, which concerns expenditure on outdoor advertising, is ongoing.
The CAG examined a number of specific expenditures and found instances with a total value of €622,000 “for which there was no evidence of goods or services having been provided”.
The CAG report had indicated that gardaí had been contacted in relation to some expenditures.
Meanwhile, Tánaiste Mary Coughlan brought a new Bill before the Cabinet yesterday to give her the power to dissolve the 17-member Fás board and appoint a new board of just 11 members, Government sources have told The Irish Times. However, the legislation has to be amended further and has not yet been sent to the chief whip.
Ms Coughlan has been severely criticised in recent weeks by Opposition parties who claim she took a “hands-off” approach to Fás.
Following the publication of the CAG report she said she would accept the resignation of Fás board members if they offered to resign.
Minister for the Environment John Gormley called on the board to resign but said the Tánaiste must decide whether the directors of Fás should be sacked.
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 tomorrow.
Fás had a budget of more than €1 billion last year.