Oireachtas Joint and Select Committees

Thursday, 23 April 2015

Public Accounts Committee

2013 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 39 - Health Service Executive
Chapter 14 - Procurement by the Health Service Executive
Health Service Executive Financial Statements 2013

10:00 am

Photo of John DeasyJohn Deasy (Waterford, Fine Gael) | Oireachtas source

I will start with Mr. O'Brien's opening statement and the section dealing with procurement practice in establishing inquiries. He said "inquiries are often urgent and the time periods for open tendering do not permit the conduct of a tender process in circumstances where the establishment of an inquiry is urgent." The issue with which we are dealing concerns the alleged sexual abuse of mentally disabled children. It has been alleged that there were dozens of children involved. The allegations date back about 24 years. I have looked at this issue inside out and there was no urgency in dealing with it. In fact, it was the exact opposite. There was resistance to dealing with it, from start to finish, within Mr. O'Brien's organisation. To actually characterise any of it as being "urgent" in any respect within the organisation is false.

On the tender process, Mr. O'Brien said inquiries were related to sensitive issues which it would not be appropriate or even permissible in some cases to discuss or publish for the purposes of an open tender process. I wish to delve into that specific point initially with the staff from the Office of Government Procurement at the Department of Public Expenditure and Reform who are present. It might also be worthwhile seeking the opinion of the Comptroller and Auditor General on what Mr. O'Brien said about the reasons this was not put out to tender.

A couple of things really strike me. Mr. O'Brien has said the necessary expertise was not available in Ireland, but how does he know that if it was not put out to tender? Tenders are not just about cost, they are also about getting the appropriate person with the appropriate skills set, but there was no attempt to do this. When it comes to the rules on contracts, the relevant regulation is No. 32 of the EC (Public Authorities Contracts) Regulations which permit awarding authorities to engage in a negotiated procedure without a call for competition in exceptional circumstances. Was there a negotiated procedure when it came to Resilience Ireland and Mr. Conal Devine? Was the Office of Government Procurement involved in the negotiated procedure with the HSE in this regard? I ask Mr. Ryan and Mr. Bresnan to indicate whether that was the case.

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