asked the Minister for Industry, Trade, Commerce and Tourism the action he proposes to take, now that the associated banks have introduced the system of cheque retention, to guard against fraud on the IDA with regard to proof of payment for capital expenditure that may be grant-aidable.
Ceisteanna—Questions. Oral Answers. - Authentication of Grant Claims.
4.
Mr. Bruton
I understand that the IDA employ a comprehensive system for authenticating grant claims. All claims for grant payment must be submitted to the IDA by the grant-aided firms' auditors. The auditors must certify that the appropriate capital expenditure has been incurred. The IDA's grant inspectors also examine the grant-aided assets on the firm's premises together with the relevant suppliers' invoices. This ensures that grant payments will be made only on assets which have been purchased and paid for by the grant-aided company.
While, at present, individual paid cheques may also be inspected in banks on request, I am informed by the IDA that the proposal of the associated banks to discontinue facilities for the inspection of paid cheques may create difficulties for auditors in giving absolute certificates regarding payments made by their clients. In view of the difficulties which may arise, the IDA are examining, in consultation with auditors and with the banks, possible alternative methods for authenticating grant claims.