150 construction firms investigated for irregularities

OVER 150 construction companies are being investigated by the Pensions Board over their alleged failure to pay pension contributions from employees into the industry’s pension scheme.

The Pensions Board said yesterday that the high level of alleged non-remittance of workers’ pension contributions to the Construction Workers Pension Schemes was an issue of major concern.

“We view this as a very serious matter,” said Pensions Board chairman, Tiarnan O’Mahoney.

Although the Pensions Board said it would consider criminal prosecutions against any employer found to be withholding pension contributions, Mr O’Mahoney said the board’s primary objective would be to seek the return of pension deductions to the scheme.

Forty firms have already repaid the contributions, while another 57 building companies have indicated they will return the money to the pension fund.

The board’s chief executive, Brendan Kennedy said any misappropriation of pension fund assets or the failure to pass on contributions was the most serious offence that could be committed under legislation governing pensions.

Speaking at the launch of the Pensions Board annual report, Mr Kennedy said a majority of allegations reported to the board last year had come from whistleblowers.

He claimed the Pensions Board, in conjunction with the Garda Fraud Squad, the Office of the Director of Corporate Enforcement and other agencies were examining all allegations of irregularities in passing on pension contributions.

In March 2008, the Pensions Board obtained a High Court order compelling a north Dublin building firm to pay contribution arrears totalling €186,825 on behalf of almost 200 workers.

It subsequently initiated its first ever criminal proceedings against the same firm, Limestone Construction of Kilreesk Lane, St Margaret’s, Dublin which resulted in the company being fined €180,000 by the Dublin District Court last September.

A warrant for the arrest of Limestone director, Colm McNulty, remains outstanding after his failure to appear in court on a similar charge.

Mr McNulty faces up to 12 months in prison and/or a fine of €5,000 if convicted of the offence.

Last night, a spokesperson for the Construction Industry Federation said it was satisfied that there was a high level of compliance with pension fund legislation by the vast majority of building firms.

He pointed out that Limestone was not a member of the CIF. The spokesperson also said that most construction firms wanted to see compliance on pension contributions to ensure “a level playing field” in the industry.

The Pensions Board revealed it opened a total of 180 new investigations last year, while on-the-spot fine notices were also issued to the trustees of 23 defined benefit schemes over their failure to submit actuarial funding certificates.