An intensive internal audit of the Department of Agriculture is to be established immediately and will report within three months.
The move follows a request from the Dail's Public Accounts Committee (PAC) chairman, Mr Jim Mitchell, that "a forensic audit" be conducted into the Department's operations. At the January 5th meeting of the committee, the former PD leader, Mr Des O'Malley, made a number of controversial allegations of serious failures by the Department in overseeing the beef industry - charges that have been strongly rebutted by the Department's secretary general, Mr John Malone, and the Association of Higher Civil and Public Servants.
Defending his Department yesterday, the Minister for Agriculture and Food, Mr Walsh, said he had "always enjoyed the full support of a staff who are exceptionally dedicated, honest and able and whose commitment to the public interest is unquestionable".
At the weekly meeting of the PAC yesterday, it was confirmed by the secretary general of the Department of Finance, Mr Paddy Mullarkey, that the Government has decided an overall review of Department of Agriculture systems of control should be undertaken by a high-level steering group. It will be chaired by Mr Sean Cromien, former secretary general of the Department of Finance. Three officials from the Department of Finance will be joined on it by two from the Department of Agriculture and Food and an external financial management expert. Representatives from both Departments and the Revenue Commissioners will form a working group to assist.
Mr Mullarkey outlined the steering committee's terms of reference. The investigation will cover a review of systems, particularly in relation to FEOGA, the agriculture budget of the EU community, and all relevant aspects of financial management and information technology in the Department.
The steering group has been mandated to produce recommendations and to report to the Minister for Finance, Mr McCreevy, and Mr Mitchell within three months.
Confirming that his Department would co-operate fully with the group, Mr Malone acknowledged its existing control systems were "not perfect" but had improved significantly since the report of the Beef Tribunal. More than six audits are already conducted by various bodies, including the EU Court of Auditors, the EU Commission and the Comptroller and Auditor General.
"If this exercise [the new audit] shows how our systems can be improved - and I am sure it will - it will be all to the good", Mr Malone added.
According to Mr Mullarkey, the audit team would consult with "anyone they feel can make a contribution".