Written answers
Tuesday, 17 June 2008
Department of Finance
EU Directives
11:00 pm
Eamon Gilmore (Dún Laoghaire, Labour)
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Question 191: To ask the Minister for Finance the number of public bodies here and so on who have been fined or had penalties imposed on them in the past three years; the cost related to them for non-compliance with EU and Irish tendering legislation; and if he will make a statement on the matter. [22731/08]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I refer to my reply to your earlier question No. 184 which was answered on 27 May 2008.
As I indicated in that reply, no fines or penalties have been imposed on Ireland in respect of tendering procedures referred to the European Commission or the European Court of Justice for examination, on the basis of compliance with EU laws on public tendering.
As I also indicated in that reply, the European Commission and the European Court of Auditors conduct audits in relation to the European Regional Development Fund (ERDF) and the Cohesion Fund and may impose a financial correction for a failure to comply with a particular article in the Public Procurement Directive. The bodies on which Cohesion Fund financial corrections totalling €10.3 million were imposed for breaches of tendering are set out in the following table. The cost of the financial correction in respect of Heuston Station was borne by CIE. The cost of the recovery in respect of the remaining four projects was met by the Central Fund.
| Implementing Body/Bodies | Project | Nature of Infringement | Financial Correction (€m) | Date of Repayment |
| Dublin City Council, South Dublin, Dún Laoghaire-Rathdown and Fingal County Councils | Dublin Water Supply Scheme (Stage 3) | An audit by the European Commission in February 2002 found that the consultants who were assigned by Manager's Order to carry out the design stage of the project were retained for the supervision stage without going to tender. The initial appointment took place in 1981. | 0.301m | October 2005 |
| Irish Rail | Heuston Station and South West Rail Corridor Development | A Commission audit in November 2002 found that when the number of platforms increased from seven to nine as part of the redesign work at Heuston Station, Dublin the signalling contract was re-negotiated with the existing contractor, and not re-tendered. | 8.928m | October 2006 |
| Sligo County Council | Collooney-Sligo Road | An audit by the European Court of Auditors in January 2002 found that the appointment of consultants for the supervision of construction of two river bridges was not put out to tender. | 0.232m | January 2007 |
| Galway City Council and Galway County Council | Tuam Water Supply Scheme (Stage 3) | An audit by the European Commission in May 2002 found that the consultants who were assigned by Manager's Order to carry out the design stage of the project were retained for the supervision stage without going to tender. The initial appointment took place in 1974. | 0.643m | February 2007 |
| Waterford City Council and Waterford County Council | Waterford City Water Supply Scheme | An audit by the European Commission in September 2002 found that the local authority should have gone to tender for the supervision stage of the project rather than retaining the consultants over the life of the project. The initial appointment took place in 1974. | 0.173m | February 2007 |
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