Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context

Question 53: To ask the Minister for Enterprise, Trade and Employment if inclusions had been reached in respect of the applications of misappropriation of funds in respect of a person (details supplied) in County Dublin. [24085/04]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

In 1996, a project undertaken by an organisation was approved for grant assistance of up to €104,000 by my Department under the EU-funded small business operational programme. In accordance with the normal procedures for the relevant measure, an initial grant of 50% of the total approved was made at that time, while a further grant of 30% was issued in September 1997 following the submission of a progress report on the project by the organisation.

On 29 January 1999, the Department was advised by the relevant organisation that it appeared to the organisation that it had received an overpayment from the Department in respect of expenses amounting to £16,500 on foot of which a grant had been paid at the rate of 75%. At a meeting with the Department on 5 March 1999 to discuss this matter, the organisation advised the Department that it had decided to alert the Garda fraud squad to suspected irregularities in relation to the claims submitted to the Department for funding for the project. The Department was advised that the fraud squad had been alerted to the organisation's concerns about invoices in the amount of £16,500 received from a supplier of services to the organisation which had been used to support the drawdown of funds from the Department. The Department was advised that the organisation's auditors had also been informed about the matter and that the Department would be kept informed about developments. At that stage, the Department suspended any further payments in respect of this project pending the conclusion of the investigations into the matter.

On 23 June 2000, the organisation wrote to the Department and confirmed that an extensive investigation by their auditors had found no evidence of fraud and that, following a fraud squad investigation, a file had been referred to the Director of Public Prosecutions who had decided that there were no grounds for action. The organisation indicated that it had accepted the results of these investigations and, accordingly, the invoices, which had been the subject of the investigations, were paid by the organisation on 23 June 2000.