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Dáil Éireann debate -
Tuesday, 23 Nov 1999

Vol. 511 No. 3

Written Answers. - Misappropriation of Funds.

Derek McDowell

Question:

74 Mr. McDowell asked the Minister for Justice, Equality and Law Reform the steps, if any, taken to establish whether there was misappropriation of public funds by the Irish Council of People with Disabilities; the reason the Comptroller and Auditor General was denied access to the draft report on this issue prepared by his Department's internal audit unit; and if he will make a statement on the matter. [24305/99]

In March 1997 the Interim Irish Council of People with Disabilities was established. This is a voluntary elective organisation of approximately 5,500 members, the majority of whom are people with disabilities. It operates in accordance with the provisions of an interim constitution which provides for 30 county networks and a national board tasked with management of the business of the organisation. One of the primary objectives of the board was the drafting of a constitution for a permanent council in consultation with the membership.

The interim council is funded almost entirely by the Exchequer by way of a grant administered by my Department. Payments made to the council by my Department totalled £450,000 and £606,000 in 1997 and 1998, respectively. To date in 1999, payments totalling £600,000 have been made. These funds are used to support the work of the county networks and of the organisation's national office. The £450,000 paid in 1997 includes a final payment of £52,000 made to the establishment group which facilitated the setting up of the interim council.
During the second quarter of 1998 officials of my Department became increasingly concerned at developments within the council. Accordingly, on 11 June 1998, the Minister of State, Deputy Mary Wallace, accompanied by officials, made known to representatives of the council her concern and that of the Department at the situation. A number of immediate remedial actions were identified to the council's representatives which related primarily to staffing and financial controls. The situation continued to be monitored closely and early in September 1998 an inquiry by the Department's internal audit unit was commenced.
Following receipt of a preliminary report on 6 October 1998 from the head of the unit and because of continuing concerns about financial control procedures, my Department appointed its finance officer as financial administrator of the council and directed that no further payments would be made by the management board or its staff without his specific authorisation. The financial administrator would also review existing financial procedures, advise as to their adequacy and what changes are required. These revised financial control arrangements have operated without interruption to date.
When a draft report became available it was circulated in strict confidence on 25 November 1998 to those people who were identified in the draft or who otherwise had responsibility for the affairs of the council, seeking their comments. Some of the comments caused minor revisions to be made to the report. However, in January 1999 before the report could be finalised, the former chairperson of the council who resigned in June 1998, initiated judicial review proceedings and sought an order preventing the publication and/or dissemination of the information contained in the report or any drafts of same. In the circumstances and having regard to the legal advice in the matter furnished to the Department that the current proceedings constitute a barrier against further distribution of the audit unit's report, it is not open to the Department at this point in time to provide access to the draft report to the Comptroller and Auditor General or to any other person, office or organisation.
In this regard, I assure the Deputy that at all times my Department is concerned that every assistance is accorded to the Comptroller and Auditor General and his staff in fulfilling their statutory obligations. I can also inform the Deputy that the Comptroller and Auditor General has received assurances from the accounting officer that the report will be released to him when the legal matter is resolved between the parties. I am satisfied that the report, when it is released to my Department and to other agencies, will be of considerable assistance in determining whether there was any misappropriation of public funds allocated to the Irish Council of People with Disabilities.
I should add that in January 1999 I appointed a seven person steering group with specific terms of reference to manage the affairs of the council pending the establishment of a permanent elective council of people with disabilities. In effect, the steering group has replaced and is fulfilling the role of the National Board of the Irish Council of People with Disabilities whose mandate expired on 31 December 1998.
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