Coughlan orders fresh probe into money management at FÁS

A FRESH probe into FÁS finances is to be launched after allegations of mismanagement of public funds, it emerged last night.

Tánaiste Mary Coughlan ordered the state’s spending watchdog, the Comptroller and Auditor General (C&AG), to investigate any “wrong doing” in the training organisation.

Fine Gael accused the Enterprise Minister of an embarrassing U-turn as it had been demanding such an inquiry for months.

FÁS was criticised in a May C&AG investigation for failing to achieve value for money in its dealings with its principal advertising agency, as well as misdirecting FÁS funds on a website project.

Ms Coughlan stated at the time that FÁS had taken steps to deal with the situation and indicated the C&AG would not be returning to the matter.

Fine Gael leader Enda Kenny used Dáil privilege in June to highlight apparent irregularities in how FÁS had spent its €9 million advertising and PR budget.

He stated that €1 million more than necessary was spent for the development of a website without the knowledge of the agency’s IT department.

Mr Kenny added that in one case, a local newspaper was paid €100,000 for a FÁS ad campaign, despite the agency’s practice of only advertising in the national press.

“This examination is to ensure that appropriate public procurement procedures exist to prevent or detect irregularities or wrongdoing and, in particular, examine and report on the activities of the FÁS Corporate Affairs area since 2000,” said Ms Coughlan.

Fine Gael’s enterprise spokesman Leo Varadkar said Ms Coughlan had effectively expressed “no confidence” in the FÁS leadership by her action.

He demanded the Tánaiste radically overhaul the board of the agency and end all “wasteful” spending.

Gardaí confirmed in June they were carrying out an investigation into activities at FÁS.

FÁS said the allegations arose as a result of its own audit, which discovered irregularities in relation to one of its contractors.

The May CAG report also found that one contract awarded in relation to Opportunities 2002 was awarded at a cost of €250,000, “at least twice as much as was paid previously, or since, for such work”.