Enda Kenny (Mayo, Fine Gael)

I have examined the guidelines and I am still not clear as to how this happened. The guidelines to all heads of Department on 26 May 1998 state at No. 3: "It is not, therefore, appropriate to make payments where the initiative for the termination of a contract comes from the CEO concerned". That is very clear and in this case Mr. Molloy was not sacked. The Taoiseach himself clarified that there was no threat of legal action. Mr. Molloy resigned. According to the guidelines issued in 1998 it was not appropriate to make that payment.

On 26 November an official stated:

I understand from news media that Mr. Molloy resigned voluntarily from his job in FÁS. If this is correct then the terms set out in the draft letter are outside those permitted in the letter of 26 May 1998 regarding severance and early retirement for chief executives of State sponsored bodies.

Correspondence from 26 November states:

I understand that Mr. Molloy has resigned voluntarily. If that is the case then our letter of May 1998 regarding severance terms for CEOs does not apply.

A further e-mail of 26 November states: "Given that the terms are different from the delegated sanction under the 1998 letter, should we not get this package referred to Government for approval where we deviate from the terms?" Clearly, this was the situation in so far as Mr. Molloy was concerned. There were three senior Ministers involved, namely, the Taoiseach, the Minister for Finance and the Tánaiste and Minister for Enterprise, Trade and Employment. All three were involved in some form or other in dealing with this-----

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