Noel Dempsey (Meath West, Fianna Fail)

Following receipt of the report referred to by the Deputy, I discussed the matter with the chairman of CIE on 22 October and expressed my concern to him on the weaknesses identified and the fact that neither I nor my Department had been informed. The chairman briefed me on the background to the report and indicated that the actual loss was limited to €2.6 million. He informed me that certain staff members had been sacked, that some cases had been referred to the Garda and that most of the recommendations in the report have now been implemented.

I also sought a full report from the board of CIE on the circumstances giving rise to the Baker Tilly Ryan Glennon report, the extent to which progress has been made in implementing the recommendations in the report and the measures being taken to ensure adequate controls in expenditure areas not covered by the report. I expect to receive that comprehensive report shortly. The CIE board has been asked to address areas of expenditure not covered in the Baker Tilly Ryan Glennon report. In the meantime the chairman and the CEOs of the CIE companies have confirmed that the CIE companies are adhering to national and EU procurement rules and to their own internal procurement policies and procedures.

I will, in light of the report from the board, consider any necessary action on my part, including the need to put in place additional measures beyond those in the code of practice for the governance of State bodies relating to procurement and auditing practices in CIE.

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