VEC boss to report on loss-making deal

THE chief executive of County Cork VEC has broken his silence on its loss of substantial sums in a school computers deal and confirmed the state’s spending watchdog was probing the issue.

In a letter to members of Cork County VEC, its chief executive, Barra Ó Briain, revealed he has responded to separate inquiries from the Comptroller and Auditor General, John Buckley, and the Department of Education and Skills.

Mr Ó Briain said he was required to do so after an anonymous tipster alerted the Dáil Public Accounts Committee to the fallout from an unorthodox computers contract.

This was signed with a Norwegian-based technology company in 2005 and resulted in the VEC losing €164,000.

Both the Tánaiste Mary Coughlan and the secretary general of the Department, Brigid McManus, have expressed serious concerns about the manner in which the deal was prepared and the fact their officials did not know about the transaction until the tip-off in October 2009.

The Department is currently reviewing a report on the issue, which was recently submitted by the VEC.

In his letter, Mr Ó Brian told VEC members he will provide a full report on the transaction to its audit sub-committee at a meeting on May 7.

The audit committee will then brief the next full VEC meeting later in May.

Mr Ó Briain said despite legal advice it had been unable to recoup the €164,000 from the company, Mobile Voyager Solutions.

As part of the deal it had sourced funding valued at €216,000 to provide the equipment used in an experimental project. This was to trial animated computer characters as teaching aids.

These were to be used at Glanmire Community College.

The funds appear to have been was given to the company on condition the amount was paid back in quarterly installments.

Mobile Voyager Solutions only returned €54,000 before it collapsed.

Mr Ó Briain said initial reports in this newspaper had failed to mention Glanmire Community College had still benefited from hardware and software packages linked to the deal. But he confirmed to members that the private company in question had gone bust.

He did not outline why the VEC agreed to source the funding on behalf of the private service provider.

Mr Ó Briain has not responded to repeated inquires from this newspaper.

Chairman of the VEC, Councillor Noel O’Connor, has said he cannot recall the matter having been aired at a full meeting of the board.

However, he said he had spoken to Mr Ó Briain and was satisfied the VEC had dealt with it appropriately.