Mary Coughlan (Donegal South West, Fianna Fail)

As the Deputy knows, I expressed my dissatisfaction with matters and on investigation was taking place. An audit commenced in November 2004 arising from issues raised with my predecessor. In June 2004, information was passed to the Garda and a final audit report was supplied in May 2006. In February 2007, the FÁS internal audit report raised further concerns. These were referred to the Comptroller and Auditor General.

As the Deputy knows, on my appointment in May this year, the report was noted by the Comptroller and Auditor General. In June I met with the chairman and director general of FÁS to discuss the report and to seek assurances that matters were being addressed. Those assurances were given in writing to my Secretary General in July this year. In September, following further concerns, I asked the Comptroller and Auditor General to report on the effectiveness of the management and control systems across the organisation. As the Deputy knows, in October, November and December of this year there were ongoing discussions with the Committee of Public Accounts.

It is important to say, therefore, that there had been disquiet and that concerns were raised a considerable period ago, in 2004, arising from notification to my predecessor at that time. The process was ongoing. Matters have been investigated and I have consulted the Comptroller and Auditor General, who agreed he will move forward on the basis of his completed work with the Committee of Public Accounts. That will probably be brought to finality at the end of next week.

It is on that basis I must say that the issues that have been raised are of grave concern. As a consequence, they are being dealt with, and have been dealt with, pro forma, since 2004 when the information was provided. I have been given assurances by the chairman of the board, by the board and by the director general that the regulations as set down by the Department of Finance are being adhered to. As I indicated in my initial response, the issues that were raised are now being addressed and the internal audit aspect of the organisation is also being expanded in order to be more robust.

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