SIPTU urged to ‘come clean’ on account fund

THE country’s largest trade union, SIPTU, has been accused of withholding information from a major HSE inquiry.

The probe seeks to discover how more than €5 million was paid into a controversial bank account, which financed 40 overseas trips for senior public servants and trade union officials.

The scandal surrounding a SIPTU bank account deepened yesterday when it emerged there was no trace of €190,000 supposedly paid into it in 2001.

SIPTU maintains it was never an authorised account of the union, although it was under the control of one of its most senior officials, Matt Merrigan, and a former national executive member Jack Kelly.

The Dáil Public Accounts Committee yesterday urged SIPTU and its two officials “to come clean” about their knowledge of the fund.

“There was a catastrophic breakdown of governance with the distinct possibility of fraud,” said Labour TD Derek Nolan, while Fine Gael TD Simon Harris said the controversy had exposed the “murkier side of partnership”.

PAC chairman John McGuinness warned that the committee could compel SIPTU and its officials to attend if they did not voluntarily provide the HSE with requested information.

Expenses totalling €302,000 were amassed on two credit cards linked to the account, including €108,000 on restaurants.

Alan Smith, a retired HSE official who had responsibility for authorising payments which ended up in the account, was also criticised for his failure to co-operate with the inquiry.

Mr Smith has declined to provide information on the grounds of ill health.

The PAC heard that Mr Smith informed the Department of Health that €190,000 (then £150,000) had been paid into the SIPTU fund in 2001. However, SIPTU claims the account’s records show no evidence of such payment.

HSE chief executive Cathal Magee said the lack of co-operation by Mr Smith was “not acceptable”.

Mr Magee acknowledged a HSE internal audit had identified “a clear breakdown” in financial controls operated by the Health Service National Partnership Fund due to undocumented changes in its funding procedures, which took place in late 2005. They resulted in the HSNPF, which was co-chaired by Mr Merrigan, paying unvouched lump sums totalling €750,000 into the SIPTU account after 2005.

Last night, SIPTU general president Jack O’Connor said the union had always been willing to appear before the PAC. However, Mr O’Connor disputed HSE figures that €5m was paid into the “unauthorised” SIPTU account, claiming the real figure was €415,000 less.

He admitted the names of some SIPTU members who had participated on overseas visits had not been disclosed to the HSE on legal advice.