Dáil debates

Wednesday, 15 May 2013

Topical Issue Debate

FÁS Local Training Initiatives Expenditure

3:20 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I thank the Leas-Cheann Comhairle for allowing me to raise this important issue. I feel I am repeating my words because on 27 September 2012, I raised the same questions. There may have been a different context because it related to workers getting paid proper redundancy, but I referred to the ongoing scandal of the abandoned hostel project in Tipperary town. I gather Pobal, FÁS and the Garda Síochána are conducting investigations, but this has been going on for three and a half years. I was informed on 27 September, eight months ago, that we could expect some results soon. At the time, we were promised the FÁS report by April 2013, but now we have been told it will not be available until the summer. This beggars belief in a modern-day democracy with accountability.

I am pleased the Minister of State at the Department of Education and Skills, Deputy Cannon, is here today. This was a fantastic project which was the brainchild of and organised by a committee. Exemplary work had been carried out by FÁS participants under a community initiative scheme in Tipperary town. Tremendous work was carried out and this project was nine tenths finished. Unfortunately, greed or whatever got involved and questions were raised over moneys. These are not my words but the words of an official from FÁS, whose report stated that an estimated €150,000 in grant money was incorrectly drawn down. That was the phrase used. Incorrectly drawn down could mean many things. I have seen cases throughout the country where small sums of money have been misappropriated. I have seen former Members of the House being arrested and hauled into court for small sums of money, perhaps only several hundred euro, and rightly so if there was any wrongdoing. However, it is remarkable that a case of misappropriation of funding to the tune of €150,000 could drag on for three and a half years. I raised this with Ministers in the previous Government who were carrying out investigations.

I salute Pobal and FÁS for the amount of funding they put into many valued and inspiring projects in Tipperary town and county. We want this to continue because we have a great reserve and resource of community-driven people in the town who want to work on these initiatives. I could name those involved but I will not because they are many and varied. However, this is tainting the good work of everyone involved in Tipperary town. It beggars belief that three and a half years have passed but there has been no result from the investigations as of yet.

What is the Minister of State hiding? What is being hidden from the public? Moneys were misappropriated. The chairman and four members of the board resigned because of the irregularities they uncovered in April 2010. The chairman reported to the Garda that his name was falsified on documents. That has been accepted but no action has been taken. The building is lying idle despite an investment of €4 million. Worse still, the good names of the members of the board who resigned have been left hanging in the air with allegations, innuendo, suggestions and implications. It is simply not acceptable.

I held a meeting recently with Councillor Mary Hanna Hourigan and Maurice Crotty, two concerned people. I salute the bravery of Councillor Hourigan in raising this several times in spite of being told to leave it alone because it was not something to be talked about. She raised the matter with Chief Superintendent Keogh of the Thurles district. Thankfully, she has reinvigorated and reinitiated the Garda investigation. I thank and salute her. I hope we get to the bottom of this. I compliment the officers who have been appointed. I have great faith and trust in them.

However, this is shameful. It is three and a half years later and this has been left hanging. We must have openness and transparency. The troika is watching everything we do.

Someone needs to be watching what we do if €100,000 of taxpayers' money can be incorrectly drawn down. That is fraud, it is common criminality and should not have happened. I am chairman of a CE scheme and the board once spent three hours at a meeting trying to explain a €20 underspend, and rightly so because accountability is only right and proper. This, however, makes a mockery of all the other projects in the State and the voluntary boards of directors. Above all, it is an insult to the former chairman, the board members, the staff and the community.

The truth must be brought out here. I am not worth my salt in this House if I do not expose this wrongdoing in my own county. I am delighted the gardaí have restarted the investigation but what about the Pobal investigation and the FÁS investigation?

3:30 pm

Photo of Ciarán CannonCiarán Cannon (Galway East, Fine Gael)
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The Tipperary hostel project, under the then FÁS jobs initiative programme, was involved in the transformation of a Famine-era workhouse in Tipperary town into self-catering accommodation for tourists. This was overseen by a development company, Tipperary Hostel Limited. The company was primarily funded through Pobal, a not-for-profit organisation that manages funding programmes on behalf of the Government, with a manpower element provided by FÁS through the jobs initiative programme.

In June 2010 as a result of findings from an audit report into the project, FÁS decided to discontinue funding to the jobs initiative at Tipperary hostel. An investigation is ongoing into the findings of the audit report into the Tipperary hostel project. This investigation is expected to be completed by the end of June. It may be that the matter will then be referred to the gardaí. The Deputy will understand that I cannot comment or speculate on the possible findings or outcomes from these investigations at this time.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I understand the Minister's last comments. I would not expect him to do anything that might upset the investigation. If the Minister of State has any respect for me or for his position, however, he would not come in here and tell me three and half years later what is happening. FÁS is well aware of what went on, FÁS participants have testified to officials about how their names were forged on documents and sick pay was drawn down for one individual.

The bottom line is honesty, openness, transparency and good governance, and the implications for taxpayers must be dealt with. FÁS says the matter might be passed on to the gardaí but it is already in the hands of the gardaí. Why is FÁS unable or unwilling to deal with this in its investigation? It has a duty to deal with it because a huge amount of taxpayers' money was involved and a wonderful project is lying idle with the crows flying in and out of it while innuendo permeates the town.

This must be cleared up. The Minister must go back to the Minister for the Environment, Community and Local Government, about the Pobal investigation. It would not happen in a country run by a junta, where there would be no answers three and a half years later and the truth would not be uncovered, no matter who it might embarrass. Who is holding back this investigation and why? I have heard all sorts of rumours.

I salute those brave people who are trying to get this finished. I salute the former chairman, Mr. Martin Quinn, for being awarded Tipperary person of the year at the event on 18 May. I wish him well following his recent illness but the truth must out and wrongdoing must be exposed. The person who did wrong must be prosecuted and we must not besmirch the good name of voluntary directors of companies up and down the country. There is one law for everyone in the country, not two. We are supposed to live in a democracy and respect everyone equally. We must get to the bottom of this. I do not want to have to beg the Ceann Comhairle to raise this again in another eight months. It is time this was brought to finality. It is unfair on the good people of Tipperary to have this morass hanging over them. Whoever is keeping a lid on it must be exposed.

Photo of Ciarán CannonCiarán Cannon (Galway East, Fine Gael)
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The audit report into the running of Tipperary Hostel Limited noted serious deficiencies in the running of the company. The Deputy is right that we must be forensic in our investigation and analysis of how these deficiencies occurred to ensure they do no happen again. I have confirmed to him that it is expected the investigation will conclude in late June. It is important to note the jobs initiative programme was transferred to the Department of Social Protection and FÁS therefore does not retain any further funding stream for projects of this type. If the hostel is to be completed under the jobs initiative programme, the decision to complete the development will rest with the Minister for Social Protection.

I assure the Deputy that I will do all I can in the limited powers I have to ensure the investigation concludes as quickly as possible.