A spate of revelations about poor financial controls at State bodies and agencies has triggered concern if not yet panic in Government circles.
The most recent is the decision of the Arts Council to scrap an information technology project having spent €6.5 million on it. The council may have failed to follow governance rules for State bodies and contravened EU procurement procedures.
The problems at the Arts Council follow several spending controversies involving the Office of Public Works, which has come under fire over the seemingly excessive costs of a number of projects including a bike shed on the grounds of Leinster House.
This current cycle of stories about apparent profligacy began with the controversy over the salaries paid to top presenters by RTÉ – partially funded via taxes and licence fees – that morphed into a much deeper investigation of the broadcaster’s finances.
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If these controversies are any guide, the members of the Arts Council can expect to be hauled before an Oireachtas committee or two to be held – after a fashion – to account. This often involves more heat than light.
The Government is right to be concerned. It is the guardian of the public purse and has a duty to ensure that taxpayers get value for their money. Beyond that, it is never a good look for politicians to be seen to be fiscally careless and it would be unfortunate were the ‘Gucci government’ tag being bandied around by the Opposition to stick.
There is a need for perspective, however. The Government will spend over €120 billion this year and it is inevitable that issues around financial control and value for money will arise at certain projects and particular departments and agencies. They must all be fully addressed and resolved in a timely manner.
Of wider concern is the possibility that these issues speak to a systemic problem that cuts across the public service. It is reasonable to ask whether the various financial checks and balances built into the way public money is disbursed and spent are still working. Ministers and officials need to be sure that the public spending code is followed and that those overseeing projects have the requisite skills - which can in some cases require support from elsewhere in the system.
The office of the Comptroller and Auditor General also has an important role in overseeing spending after it happens and drawing conclusions. It audits spending by Government departments and a range of State bodies. It currently has a staff of 200, up from around 145 ten years ago. State spending has almost doubled over the same period. The provision of additional resources to the C&AG could in itself prove a good investment.
