SIPTU to demote official at centre of training fund controversy

SIPTU has decided to demote its senior official who was a signatory to the account at the centre of the controversial HSE SKILL training fund.

Matt Merrigan was one of two union signatories to the SIPTU National Health and Local Authority Levy Fund into which the state and private sources placed almost €4.5 million between 2001 and 2010.

Serious issues emerged in recent months surrounding the account, not least regarding large sums that were used to pay for 31 foreign trips for trade union leaders and senior civil and public service staff.

When the controversy erupted the SIPTU executive insisted — and it now seems universally accepted — that it had no knowledge of the account.

In March, SIPTU confirmed that it was hiring a barrister to investigate its “employee relationship” with Mr Merrigan.

Richard Kean carried out a detailed investigation over the ensuing weeks before reporting his findings to the union’s general secretary, Joe O’Flynn.

The union found that while Mr Merrigan acted inappropriately, he did no do so for his own financial gain. However, it judged that as someone who held a senior position within the union, he should not have operated the account in the first place without telling SIPTU.

He should have kept adequate records and accounts on the monies, as they came from the public purse. He should also have ensured that the money was fairly dispersed.

The investigation concluded that there was no evidence he personally gained financially from the account and it acknowledged Mr Merrigan’s 30 years of unblemished service.

Therefore SIPTU decided dismissal from the union would be disproportionate. It is to demote the official from divisional to sectoral organiser with losses in pay, pension and terms of conditions that will entail.

Mr Merrigan has seven days to appeal the decision.

In relation to SIPTU activist Jack Kelly, who was also a signatory to the account, a separate union committee, will examine whether any sanction is applicable to him.

The controversial account itself, which SIPTU took control of a number of months ago, is to be closed. The €697,894 that it contains is to be sent to the Department of Finance.