Anonymous tip-off revealed VEC debt
The Department of Education, which has expressed serious concerns about the deal, was not aware of the loss until a person contacted the Public Accounts Committee last October.
It subsequently discovered the VEC had borrowed the equivalent of €216,000, which it gave to a private company, Mobile Voyager Solutions. This was to fund computer-generated learning aids to Glanmire Community College. Only €54,000 was returned to the VEC before the company dissolved, leaving the VEC to pay the outstanding €164,000 itself.
It is not yet clear why the VEC sourced the funding to pass it on to a contractor.
The Department of Education’s secretary general, Brigid McManus, said there were a number of potential problems with the mechanics of the deal, and the fact it was not informed sooner.
Tánaiste Mary Coughlan said she was alerted to the issues on her recent appointment as Minister for Education and had similar worries to Ms McManus.
She said the department will assess a report supplied by the chief executive of County Cork VEC, Barra O Briain, before taking further action.
“A report has been forwarded to the department for consideration. The last report has been received by us recently. We are evaluating that at this moment in time. And we will be making a timely response,” Ms Coughlan said.
In October 2009, the PAC received a tip-off that claimed Glanmire Community College and its parent, the VEC, entered into a contract which collapsed.
This information also said the equipment that had been supplied was not used for its intended purpose.
Ms McManus wrote to Mr O Briain on November 4, 2009, asking for an explanation. It emerged the VEC had expected Mobile Voyager Solutions to repay the €216,000 in quarterly installments, but only €54,000 was received before the firm went bust.
Principal of Glanmire Community College, Pat McKelvey, took over the school in 2006 after the deal collapsed and has said all relevant information has now been passed on to the VEC.
Chairman of the board of County Cork VEC, Councillor Noel O’Connor, said he was now aware of the issue. But, as far as he could recall, it had never been dealt with at a meeting of the authority either to discuss the fallout from the loss or the recent departmental probe.
Mr O’Connor spoke to its CEO, Mr O Briain, and said he was satisfied with the response. “I am happy the VEC acted in a fair manner.... and I am sure the CEO will address any issues at our board meeting on the third Thursday of the month. We operate in an open and transparent manner and have excellent processes in place,” he said.
Mr O Briain was not available for comment yesterday.
