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Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Does Mr. Nugent understand that I hope he has not created a bit of a-----

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: My two last questions concern the Office of Government Procurement. What guidelines on prepayments and deposits of prepayments are in the documents that the office issues to all public sector bodies?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Stop. Mr. Deane is losing me there, and I am the Chairman of the Committee of Public Accounts.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Surely procurement includes how one pays. Does the standard procurement contract allow for prepayments?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Can it or can it not?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: However, we have just heard Mr. Culhane say hundreds of thousands of euro in prepayments can be possible. We heard that DIT cost the taxpayer €700,000 with its library prepayment for the next 12 months, in advance of the academic season. Now the Office of Government Procurement is before us.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Has the office picked up on this? It needs to address this as part of its guidelines on prepayment.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: I ask the Comptroller and Auditor General to respond.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: What is the link between them-----

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Wow.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Right. I am still not satisfied.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: From a procurement point of view, aside from the contracting, if one is helping people to design their tender process surely a facility for prepayment or discounts in lieu of early payment or prepayments could be part of it. I do not understand what the office does if it does not deal with these types of issues.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Does the Office of Government Procurement have any role in issuing guidelines on this?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: On this issue.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Does Mr. Deane believe the office should?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Is that in the Government Procurement Office's framework?

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: Let me outline my worry as Chairman of the Committee of Public Accounts. In the past year, we have had an example of a State body costing the taxpayer €700,000 because of a prepayment and the relevant company going bust. Today, the Comptroller and Auditor General tells us that, at the end of the financial year, €11 million in prepayments to the private sector were in the...

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: To return to Government procurement, I have listened to all the comments on procurement and the breaking of contracts but there is still a big risk that does not seem to have been registered in the Office of Government Procurement.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: I refer to guidelines on the risk. Mr. Deane said there might be a benefit, which I understand, but there is an associated risk. I see nothing coming from the office in regard to how it could be managed. I ask Mr. Deane to send us something and talk to the Department of Public Expenditure and Reform. We will write to the Department and the Office of Government Procurement.

Public Accounts Committee: Garda Internal Audit Report on ICT Directorate Payments Process (31 May 2018)

Seán Fleming: It is too vague for me. As Chairman of the Committee of Public Accounts, I believe the situation is not adequately in hand. I am looking to Mr. Deane and to the Department of Public Expenditure and Reform to address this. There has been a loss to the taxpayer. Not only was there a loss but Mr. Deane is actually telling us there is no great system even to learn from that loss. The lessons...

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