Pearse Doherty (Donegal South West, Sinn Fein)
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161. To ask the Minister for Environment, Community and Local Government the reasons payment has not been processed in respect of a project (details supplied); if he will provide a clear commitment that all of the outstanding moneys will be paid as soon as possible; and if he will make a statement on the matter. [12686/14]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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In 2011 the relevant Local Development Company (LDC) approved grant aid of €372,392.17 for this project under the LEADER elements of the Rural Development Programme 2007-2013 (RDP). The project was subsequently deemed ineligible by my Department due to deficiencies in the tendering process. Following extensive discussions with the LDC, the local authority and within my Department, it was agreed that due to the severe financial difficulties being experienced by the Community Group, my Department would issue ex-gratia payments to the value of 75% of the grant aid, with the local authority paying a further 12.5%. The Group was advised to contact the relevant LDC with regard to the remaining 12.5%.

My Department wrote to the Group in question advising that the ex-gratia payments would only be made on the basis of the Group submitting paid invoices to my Department and that the money would be used to pay the contractor who was in the process of taking legal action against the Group. 75% of the value of the original grant of €372,392.17 is €279,294.18. An amount of €59,386.05 was paid to the group on foot of their first claim in December 2011 leaving an outstanding amount of €219,908.13 to be paid by the Department. As a verifiable claim to the value of €111,685 had already been submitted by the Group, my Department issued payment of this amount on the 17 February for the express purpose of settling outstanding contractual obligations with the contractor. The Group was again reminded that the remaining outstanding monies could be claimed once paid invoices were submitted to the Department.

To date I understand that the contractor has only been paid €11,417 of the €111,685. My officials are currently trying to ascertain, from the members of the Group, what has been done with the remaining €100,268. My Department is also seeking legal advice regarding the possible options available to it to resolve the matter and intends to take all steps necessary to protect public funds.