Enterprise ignored early warnings about Fás waste

WARNINGS about waste and mismanagement of a €126 million Fás “slush fund” were ignored by the Department of Enterprise as far back as 2006.

Investigations have been launched by the gardaí and the Oireachtas Public Accounts Committee into the fund which was used to train people in employment. Mismanagement also led to the withdrawal of €57m in EU funds. But documents obtained by Irish Examiner reveal the alarm was raised in August 2006 when a Department of Enterprise official wrote to assistant secretary Dermot Mulligan about concerns that there were not appropriate checks and balances in place for the Fás Competency Development Programme (CDP).

The letter warned some general and vague project proposals were approved and “very significant budgets are being provided to individual organisations”. The official assigned to oversee the scheme said independent, forensic audits should be carried out on projects.