Marian Harkin (Sligo-Leitrim, Independent)
Link to this: Individually | In context

Question 179: To ask the Tánaiste and Minister for Health and Children if appropriate tax clearance procedures in relation to the recruitment of all external contract staff for the PPARS computer system were followed by management; and if she will make a statement on the matter. [19162/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

I have been advised by the HSE that a number of external agencies placed technical (programming) resources with the PPARS project for configuration work related to the SAPHR software which the PPARS project utilised. These staff worked under the direction of the PPARS management team. PPARS was invoiced by the external agency for the services provided by the technical resources and the agency paid the individual contractors.

Department of Finance Circular 22/95 states that "In the case of all public sector contracts of a value of EUR 6,500 (inclusive of VAT) or more within a twelve month period the contractor ( and agent as appropriate) will be required to produce either a valid tax clearance or C2 certificate." The HSE Internal Audit report on the Procurement Process in respect of the Supply of Contract Personnel to the PPARS Project concluded that "appropriate tax clearance procedures were not followed in respect of payments to these companies."

The HSE has indicated to the C&AG and to the Internal Auditor that tax clearance procedures have been reviewed to ensure full compliance and stated that a designated manager must be formally appointed for each major contract. Tax Clearance status must be established prior to the award of a contract. The recommendation to award a contract must include a certification by the contract manager that all policies, procedures and other requirements (including tax clearance) have been complied with in the tender process. This procedure will be further strengthened when the composite Financial Regulations of the HSE are introduced later this year.

The recommendations of the Internal Auditor arising from his audit of this matter have been supported by the CEO of the HSE who has also stated that under the HSE's National Procurement Policy which came into effect on 1st January 2006 "there are now no acceptable excuses for non compliance". Professor Drumm has also indicated that he has asked the National Director of Finance, HSE, to ensure all necessary procurement and financial procedures are being followed by the PPARS project office.

Marian Harkin (Sligo-Leitrim, Independent)
Link to this: Individually | In context

Question 180: To ask the Tánaiste and Minister for Health and Children if official public procurement policies were followed by management involved in the PPARS computer system; and if not, the irregularities which occurred; and if she will make a statement on the matter. [19163/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

The Report of the Comptroller and Auditor General on the 'Development of Human Resources management System for the Health Services (PPARS)' published in December last year stated in relation to procurement that: "A competition for the procurement of technical configuration and support contractors was held in November 2002, one year after the PPARS National Project Team has begin to engage personnel on an ad hoc basis through recruitment agencies. Notwithstanding the results of this competition, there does not appear to have been any change in the companies engaged in this work. Companies that had not been involved up to then, but ranked well on price, were not engaged. Even after this procurement round the actual rates paid to a number of the companies who submitted tenders were higher than their tendered rates. The HSE is currently reviewing the arrangements that were used to procure these services."

I have been advised further by the HSE as follows: The report of the HSE's Internal Audit unit on this matter found that: "The procurement process in respect of the recruitment of the companies to provide technical contractors for a number of the years examined (November 2001 to May 2003) was not carried out in accordance with the appropriate Financial Regulations and Procurement Policies and Procedures."

It is important to note that this Internal Audit Report has not attached any irregularities or impropriety to any staff member in relation to the selection of, the use of, or expenditure on technical contractors. Furthermore previous and subsequent PPARS procurement initiatives were carried out in accordance with the appropriate Financial Regulations and Procurement Policies and Procedures.

The breach of policy related to not advertising requesting companies to participate in a process to provide contract staff. Resources were sourced from companies who had offered staff and the remainder were sourced on the basis of recommendations from existing consultants. The fact that contract personnel engaged by the PPARS project were subsequently engaged by the PPARS Technical Implementation Partner endorses those contractors' experience and capability. Finally, subsequent PPARS procurement processes support the fact that rates charged by contractors represented good value.