Fás boss’s deal broke state rules, PAC told

THE golden handshake deal agreed with former Fás boss Rody Molloy was in breach of the Government’s own rules, which state it should have been sent to cabinet for approval by all ministers.

The Dáil Public Accounts Committee heard how a “special arrangement” was made by officials at the Department of Finance to exempt the payment from the official guidelines on severance payments.

A senior civil servant in the department went against the advice of three of his colleagues to refer the deal to cabinet and was simply asked by Finance Minister Brian Lenihan if it was “in line with the norms” and answered that it was.