Government under pressure over Molloy car

THE Government is under pressure to explain why the former Fás chief, Rody Molloy, got to keep an expensive company car along with his pension and golden handshake when he left the agency following an expenses scandal last year.

Mr Molloy was allowed to keep the Audi A6 worth around €23,000 in what was last night described as a “nod and a wink arrangement”.

Chairman of the Dáil Public Accounts Committee (PAC) Bernard Allen said his committee were not told about the car when details of the severance arrangement were discussed in last week’s committee meeting.

Peter McLoone yesterday resigned as chairman of the board and the other members signalled they will also step down once a replacement board has been found. Following a board meeting yesterday, one member, Des Geraghty, apologised “with no hesitation” for any mistakes or shortcomings in overseeing the agency’s operations.

However, Fine Gael Enterprise spokesman Leo Varadkar said the Oireachtas should have full scrutiny of the new board before it is appointed, and it must be more than “a slimmed down carbon copy of the original”.

He said: “Although Peter McCloone has resigned, the senior executives within Fás who tolerated wasteful spending have still not been held to account. The only other person who left voluntarily was Rody Molloy, and he received a significant pay-off at taxpayers’ expense.”

The Department of Enterprise, Trade and Employment last night said the car was not part of his severance deal, but was agreed with the Fás board before Mr Molloy departed.

Mr Allen (Fine Gael) said the PAC will call Sean Gorman, secretary general of the Department of Enterprise, before the committee to explain how Mr Molloy was left with the expensive car on top of his generous severance deal.

The department, which oversees the work of the state training agency, issued a statement last night saying “the car was not part of the severance package negotiated with the Department and sanctioned by the Department of Finance. It was a matter for the Fás board which agreed retention of this vehicle”.

Mr Allen said it was “unacceptable that the department can wash its hands and not accept any responsibility”.

He said: “Whether or not it was part of the package, it was part of the culture that went on there. It smacks of another nod and wink arrangement between Fás and this individual and is typical of what went on there.”