College paid up to €140,000 to staff members’ firms

A CORK college paid up to €140,000 to two companies owned by two of its IT staff for services and equipment without always seeking competitive quotes.

Coláiste Stiofáin Naofa (CSN) has also been forced to cut its staff from this year after it was found to have overstated enrolment numbers. The inflated numbers resulted in more teachers than it should have being sanctioned by the Department of Education, as well as grants being over-allocated between 2004 and 2009. The total cost of the extra staff and surplus grants was estimated at over €800,000.

The breaches of procurement rules and the overstated enrolments were reported to gardaí by the City of Cork Vocational Education Committee (CCVEC), which runs the school. However, gardaí said there was no crime involved.

The loss to the VEC from not properly tendering for IT services and equipment is unknown. But the college’s head of IT, Richard O’Sullivan, has paid €4,877 to the college, had his salary cut and his work was put under review for a year after being disciplined for the conflict arising from his role in one of the two companies.

A former IT technician at the school was involved in the same company for two years, while a second firm owned by him supplied goods and services worth almost €162,000 to the VEC from 1997 to 2009. He had a role in the college’s IT procurement from 2003 until he retired in 2008, and was contracted to the college for another 10 months after that and paid €28,000.

The company jointly owned by the technician and Mr O’Sullivan, who both handled IT purchasing for the college subject to the principal Tim Kelleher’s final approval, was paid €25,410 between 2007 and 2009. Mr O’Sullivan took over sole interest in the company in June 2008.

One of the transactions involved the purchase of 17 laptops from the joint company for €12,563 in December 2007. According to a report by Comptroller and Auditor General (C&AG) John Buckley, there were deficiencies with the quality of the quotes obtained. “One quote consisted of a flyer deal for student laptops and did not take account of the quantity being purchased. Two other quotes were printed from internet sites on the date of delivery of the computers to CCVEC and neither quote was for the same specification or took account of the quantity being purchased.”

Mr Kelleher approved the laptops deal after becoming aware of Mr O’Sullivan’s conflict of interest. He said he did so in order to spend the money before the end of the year but that he asked Mr O’Sullivan to stop using the company for college equipment and services.

After disciplinary proceedings by the VEC, Mr Kelleher had his salary reduced and his conduct was placed under review for two years.

CCVEC chief executive Ted Owens said last night that the C&AG’s report found that appropriate action was taken by the VEC. Mr Kelleher and Mr O’Sullivan did not return calls to them at the college from the Irish Examiner yesterday.