Concerns over Fás director raised in 2003

CONCERNS about the conduct of a senior Fás executive at the centre of a major probe into breaches of financial controls were first raised as far back as 2003.

The Dáil public accounts committee yesterday heard serious concern was expressed by a Fás financial controller about how its director of corporate affairs, Greg Craig, spent €5.5 million with advertising agency Euro RSCG during 2003.

Mr Craig was suspended last week after fresh issues arose over his control of a €50m budget for which he had already been disciplined in 2007.

A €10,000 contract awarded to Euro RSCG without tender was also noted in an internal audit report that was highly critical of Mr Craig.

It also emerged that former director general Rody Molloy informed the Fás board in October 2006 he had asked then assistant director general Gerry Pyke to take responsibility for Mr Craig to ensure he “observed public service norms”.

However, Mr Molloy claimed he had merely asked Mr Pyke, who retired last February, to become Mr Craig’s line manager because he did not have time to take on that role himself.

He described Mr Craig as “very innovative” and someone who had “demonstrated ability to get things done”. However, he added ruefully: “I made the unfortunate presumption that they were being done appropriately.”

Commenting on his resignation last week, Mr Molloy said he felt he was best serving Fás by leaving as he was witnessing an organisation “disintegrating with the continuous flow of very negative media comment”.

He denied there had been any pressure placed on him to resign by Tánaiste and Enterprise Minister, Mary Coughlan.

Mr Molloy also apologised for his failure to attend last week’s committee meeting. He had felt it was inappropriate to appear as he had resigned just two days earlier and had mistakenly understood that he had not been invited to attend.

He also doubted whether he would have been in a fit state to help the committee.

“The few days after my resignation were traumatic ones for me and my family, particularly as my home was besieged by elements of the media,” he remarked.

Mr Molloy said the release of Fás documents under Freedom of Information legislation, coupled with the leaking of other material and the treatment of such information by the media, had made his position increasingly untenable.

“The final straw came with my ill-judged interview on the RTÉ Kenny show,” he added.

The former director general also said he accepted in hindsight that taking first-class flights was inappropriate given Fás was an organisation helping underprivileged people.

However, Mr Molloy stressed he felt such travel had been in line with public service guidelines.