Údarás mistakes ‘cost €310,000’

MISTAKES made by Údarás na Gaeltachta in a major property deal ultimately cost taxpayers more than €300,000, according to a report by the Government’s top auditor.

Comptroller and Auditor General John Purcell, who acts as the Government’s financial watchdog in the management of State agencies, said the body in charge of developing Irish-speaking areas was guilty of “shortcomings” in its handling of the controversial sale of 13 holiday homes in Connemara last year.

Mr Purcell highlighted the episode in a six-page supplement to his review of the agency’s annual accounts, which were published this week.

Mr Purcell’s probe focused on the authority’s attempts to sell the holiday homes after it decided their role in developing tourism in the area was over.

The authority received bids as high as €1.96 million for the properties, but it went against the recommendation of its executive and instead opted for a bid of €1.45 million. The winning bid was from a local group that included a former Fianna Fáil councillor, who later received a public apology from the authority after he claimed his reputation was damaged by the controversy.

Minutes of the relevant meeting showed one member of the authority was unhappy with the bid decision and questioned whether it could be justified.

The authority later aborted the sales process after hearing legal advice that European Commission approval for the deal should have been obtained. It had incurred bills of over €50,000 in legal and other fees relating to the properties at that stage. The Department of Community, Rural and Gaeltacht Affairs, which oversees the authority, had also expressed concern over the process.

Mr Purcell’s investigation found Údarás na Gaeltachta had failed to put in place appropriate selection criteria and a scoring mechanism to evaluate the 11 bids received. The authority eventually agreed to sell the properties for €1.65 million after running a second tender process, which attracted just one qualifying bidder.

Mr Purcell asked Údarás na Gaeltachta chief executive Ruan O’Bric to explain the failure to conduct the initial process properly, and what steps had been taken to make sure future property deals were conducted fairly and ensured market-related prices would be achieved. Mr O’Bric said the €310,000 difference between the top bids in each process was down to the authority’s efforts to achieve a balance between achieving a good price and maintaining the Gaeltacht image of the holiday village.

He added that the European Commission had not been approached about the deal because of fears over a delay in getting a response and concerns that its approval would not be given.

Mr Purcell said the authority was happy the second process was “proper and sound” and that the final price agreed was acceptable. The authority has since developed guidelines for selling assets.