SIPTU hires barrister in account probe

A BARRISTER is to be hired by SIPTU to investigate its employment relationship with one of the signatories of a controversial account used to fund 31 foreign trips and to channel money to unions.

A report into the fund by SIPTU yesterday revealed that its national industrial secretary Matt Merrigan had opened and operated the account without the official authorisation of the trade union.

The trade union’s report into the skill training scheme fund concluded that the fund’s accountability was “not sufficiently robust”.

It blamed Mr Merrigan for not fully accounting for the spending of the fund, which was built up over an eight-year period.

SIPTU’s investigation found the majority of people who went on these trips had no connection to SIPTU and were senior management, employed at the highest level of the public service. Wives and spouses also went on trips.

But Mr Merrigan’s account of foreign trip spending was “incomplete”, the report found.

Last night the Department of Health said the fund in question had previously been examined by the Public Accounts Committee but would probably be reconsidered under the current Dáil.

Yesterday’s report concluded Mr Merrigan and another SIPTU official, Jack Kelly, had opened the account without the authorisation of SIPTU’s main finance officers.

The union has now agreed to pay back the remaining €697,000 from the fund to state bodies after the account was frozen and an inquiry launched into its use.

A number of bodies contributed to the so-called SIPTU National Health and Local Authority “levy fund”, including the HSE (€2.1m), the National Partnership Forum (€943,000), the Local Government Management Services Board (€788,000), Beaumont Hospital (€100,00) and others, the investigation found.

Micheál Martin, in his final days as health minister in September 2004, signed off on a letter that approved a grant of €190,000 for the SIPTU fund, which turned into an annual donation of €250,000 to the account.

In a letter to SIPTU, Mr Merrigan claimed the bulk of the fund went on training as many as 5,000 officials and activists. He said the monies were not for the trade union but for projects.

Over a six-year period, some €302,000 was spent on credit cards as part of the fund on hotels, restaurants and travel costs.

SIPTU president Jack O’Connor yesterday revealed that a review of the trade union’s governance of its funds and management had been ordered.

Mr O’Connor yesterday said the trade union had not officially been aware of this fund and it had only come to light after a HSE audit was carried out in 2009.