Inspector to examine companies at WIT

An inspector has been appointed by Education Minister Ruairi Quinn to examine a range of subsidiary companies at Waterford Institute of Technology (WIT).

The unusual step was announced yesterday evening and the minister expects an interim report of the statutory inquiry within a month from former Revenue Commissioners chairman Dermot Quigley. He has been asked to carry out an inspection under laws governing the institutes of technology sector which have only twice before been used by previous ministers.

A report in June by taxpayers’ watchdog, the Comptroller and Auditor General (C&AG), said accounts for six campus service companies at WIT did not form part of the college’s accounts.

This was also the case at some other institutes of technology but the C&AG said the transactions, assets and liabilities should be consolidated into college accounts in all instances where campus services are administered through companies.

The terms of reference require Mr Quigley to inquire into matters relating to the relationship between WIT and a group of companies which provide a range of services to the institute.

As well as Diverse Campus Services Limited and its five subsidiaries that operate a student canteen, student residences, recreation facilities, a retail outlet and sports hall, two further related companies are also involved.

“It is important to stress that this review relates solely to the relationship between the institute and the companies in question and does not relate to the academic reputation or day-to-day operations of its academic programmes,” the Department of Education said.

Mr Quigley has been asked to examine a number of issues, and their possible impact on the governance, operations and financial position of WIT, including:

nThe relationship, including the financial relationship, between WIT and the companies providing campus services;

nThe companies’ financial position, including their assets and liabilities as they relate to operations in WIT;

nUse of the companies’ resources, including the extent to which they were applied for the purposes of the college;

nPossible changes in the relationship between WIT and the companies, in line with best practice.

In a statement last night, WIT said it will work closely and co-operate fully with Mr Quigley to ensure a swift resolution to the matters under enquiry.

“The institute has built a strong reputation in higher education and research over more than 40 years and its priority has always been, and continues to be, delivering top class education, services and facilities to its students and the region,” it said.

All eight companies are privately owned and the six service companies are limited by guarantee and do not have a share capital.

The department has also informed the C&AG Seamus McCarthy and the Dáil Public Accounts Committee of the inquiry.