Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for allowing me the opportunity to raise this important matter of public interest, which is also of grave concern to me, especially given the recent revelations of how taxpayers' money has been spent in some of our educational institutions. For example, in Waterford Institute of Technology, the spending in the president's office alone increased from €30,000 in 2000 to more than €600,000 in 2008. From recent reports, I understand there have been numerous breaches of financial governance procedures and protocols within the institute.

I compliment the Committee of Public Accounts and its members who are currently examining this matter and I hope the spotlight will ensure full transparency around this problem. Also in my constituency, De la Salle College in Waterford city, a second-level college with a great educational heritage and reputation, has had its reputation damaged in recent times due to the college's racking up more than €500,000 in debts on school refurbishment projects that, according to a recent whole school evaluation, had little educational benefit. Management and governance were so poor the Department of Education and Skills had to appoint an administrator to manage the college while these debts are being dealt with.

I am aware also of a national school in County Waterford where in recent years it was discovered that a former principal was operating a number of bank accounts and had held school moneys without the knowledge of the school's board of management. The same principal had adopted annual accounts at board of management meetings over a number of years, knowing full well these moneys were neither being accounted for nor reported to the board of management. When this came to light an initial two accounts were discovered, with a further four discovered subsequently. Only under the threat of disciplinary action did the principal give full permission to the board of management to access all the bank accounts he had opened and in which school funds were held. Eventually more than €77,000 was transferred by the former principal from these private accounts back to the authorised board of management bank account. In total, 19 private bank accounts were discovered which had been opened and operated by the former principal without the knowledge or approval of successive boards of management. Eventually, the board engaged independent expertise at its own cost. The experts did a forensic analysis of the accounts and compiled some very important questions that required answers from the former principal. The board requested a break-down and explanations from him regarding the €77,000 which was transferred back to the authorised school account.

I do not suggest any school funds were misappropriated but there were financial irregularities in this case and one can only imagine the distress and upheaval this matter has caused within the entire school community. The board of management asked specific questions of the former principal about certain transactions that went through these private accounts. When these questions were put to him he went on sick leave and never returned. He subsequently retired. To this day many questions remain unanswered regarding the operation of these private accounts and the management of school finances during this period.

What disappoints me is that during all of this time successive boards of management of the school in question sought assistance from the Department to deal with these issues but they received very little support or advice and were left to their own devices to manage what had become a very difficult financial problem. A whole school evaluation was carried out during the period and even though the inspectors were informed of the financial irregularities they did not examine them closely other than to make a passing reference in their final report. This is not good enough. Millions of euro of taxpayers' money is put into our educational system. We are entitled to expect thorough and adequate financial governance, as well as checks and balances to ensure the proper management and allocation of these funds. If this can happen in the two colleges and this primary school in my constituency we can be sure it is happening in others around the country.

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