‘Major concerns’ found in audit of Gaeltacht firm

AN EXPLOSIVE internal audit exposing wastage of taxpayers money and the signing of blank cheques at a community development company has been released.

The audit of Meitheal Forbartha na Gaeltacht (MFG), the head office of which was in Dingle, Co Kerry, was carried out last year by the government funding agency, Pobal.

MFG closed suddenly in September, when the company became insolvent, with the loss of more than 100 full-time jobs.

According to a copy of the audit, a number of issues were identified that are of major concern to Pobal.

These included signing of blank cheques and other “weaknesses” in relation to internet banking authorisation, and “over spends” of almost €63,000 in relation to wages in 2009 alone.

The financial procedures document states that the pre-signing of cheques is prohibited. However, the administrator pre-signed nine blank cheques on the Millennium bank account cheque book and a director had pre-signed three blank cheques on the CE Scheme (non-Pobal) cheque book.

Other concerns raised were about bank transfers to internally administered accounts as well as incomplete records of tendering processes.

The report stated that invoices from a Donegal-based bus hire company for over €4,500, “deliberately included” incorrect travel dates.

A spokesperson for Pobal said the issues highlighted within the report are of “major concern” to them.

Asked what further action they would take, the spokesperson said: “Pobal, in consultation with the Department of the Environment, is identifying possible mechanisms to implement the programmes previously implemented by MFG in Gaeltacht areas.

“There is no reason to contact the gardaí based on the contents/findings of this report.”