Oireachtas Joint and Select Committees

Thursday, 27 February 2014

Public Accounts Committee

Payments to Section 39 Companies: Discussion

2:10 pm

Mr. Brian Purcell:

There was no formal response. The two core elements are, first, we had to look at this fund in the context of the overall spend within the Department, the expenditure review and where we would have to make savings within the departmental budget. The other issue flagged by the audit was the actual scheme itself and the fact that there were very high costs. That was a flaw in the system. The decision-making process to wind down the scheme was under way at that point. Once the audit was there and we did not get the formal response, the letter issued. The letter invited submissions in respect of that issue. No response was received and the next thing was that the litigation was launched in November.

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