Erroneous €19k bonus ‘not being pursued’
The National Educational Welfare Board (NEWB) has refused to comment on reports this week that it is no longer pursuing its former IT manager, Neil Ryan, for the money paid to him six years ago, even though it did not have a bonus scheme at the time.
The payment emerged in a 2007 report by the Comptroller and Auditor General (C&AG) into financial controls at the board, which also revealed irregularities in the tendering for more than €900,000 worth of IT equipment and services.
Mr Ryan was suspended from duties and resigned in 2006, but is currently being sued along with a former IT supplier in the High Court as the NEWB seeks to recover payments for equipment and services.
It was reported this week that the board has been given legal advice that it had a very low chance of succeeding in any court action to get back the €19,230 bonus. It also emerged that it is not pursuing repayment because of the comparatively significant cost and the more substantial case it is already taking on the IT payments.
Fine Gael TD Bernard Allen, chairman of the Oireachtas Public Accounts Committee (PAC), which held hearings into NEWB’s financial controls in July 2008, has expressed concern at the news.
“We recommended that the NEWB would make continuing efforts to recover bonus payment made inerror and they assured us they would be doing that,” Mr Allen said.
“That was only one of a number of issues. We were also concerned about increments being paid that didn’t have to be paid and IT procurement. If they are now going back on assurances regarding recovery of the bonus, I will be raising the issue with my committee,” he said.
A NEWB spokesman said it would be inappropriate for the board to make any comment as there are proceedings pending in the High Court, referring to the case in relation the IT supplies payments.
The 2007 C&AG report revealed the NEWB had €200,000 worth of IT equipment more than it needed and that losses of up to €271,000 had accumulated on payment for IT services which were never provided. The board had paid professional and consultants fees of €228,000 investigating the irregularities, which came to light in 2005.
Out of 122 transactions worth more than €900,000 in the two-year period examined, only one worth €85,000 had been the subject of a tendering process.
NEWB chief executive Eddie Ward told the PAC in July 2008 that strict financial controls have been in place since the irregularities came to light. The board was set up under 2001 legislation to ensure all children aged six to 16 are receiving education and to monitor school attendance.
