Answers demanded on prison contract

A POWERFUL Dáil committee has written to the departments of Justice and Finance querying why about €100m of taxpayers’ money was spent on prison facilities without being subjected to a tendering process.

The cross-party Public Accounts Committee wants an explanation as to why a firm granted an original contract worth €4.7m then received a number of other lucrative contracts which were not put out to tender.

The issue first arose at a hearing of the committee last month, when Prison Service and Justice Department officials were questioned about a 2004 contract to build a new 60-bed unit at the Loughan House prison in Co Cavan.

The unit cost €4.7m, but under questioning from committee chairman and Fine Gael TD Bernard Allen, the Prison Service revealed that the contract was a “draw-down” one.

This meant that the firm awarded the contract could be hired again to carry out additional projects without further tendering. This was exactly what happened, with the firm hired to construct a range of facilities at different prisons at a total cost of circa €100m, the director general of the Prison Service, Brian Purcell, said.

Mr Allen questioned how an original contract worth €4.7m could have mushroomed into contracts worth €100m without open tendering.

Mr Purcell defended the process, saying the Prison Service had tendered for the original draw-down contract awarded to the firm.

But the Department of Finance officials who were present at the meeting admitted there was cause for concern.

Asked if the Department of Justice appeared in compliance with normal rules, a Finance official responded: “No, from what I have heard it is a matter of concern.”

Speaking to the Irish Examiner, Mr Allen said the committee had sought full details of all the contracts.

“There are major questions here to be answered in terms of procurement, in terms of compliance with European law,” he said.

“We can’t pass a judgment until such time as we get those details.”