VEC won’t deliver keylease report in public

County Cork VEC has accepted there were problems with unauthorised leases at Mallow Youthreach but at the last minute voted to deliver a report on the matter behind closed doors.

The Department of Education has said it was given wrong information about a series of unapproved leases CCVEC signed in Mallow in order to access unsanctioned borrowing from the local credit union.

The matter was raised at the Public Accounts Committee and CCVEC has been asked to account for what happened. However a plan by CCVEC’s acting CEO, Joan Russell, to explain what happened in public session was blocked.

At yesterday’s VEC meeting, chairman Gerry Kelly called a vote and all bar two members opted to discuss the report during a private committee session.

Ahead of the meeting, freedom of information documents from Pobal revealed the cost of borrowing the organisation agreed to in order to open a Youthreach centre, and later a community crèche, at Ballyellis, Mallow (it was charged up to 9% interest). The largest unauthorised loan was arranged to help build a €1m grant-funded crèche alongside the Youthreach centre.

However, the committee was told the original plan for the childcare centre was not working.

Ms Russell asked the committee for permission to explore the possibility of subcontracting the running of the crèche to a private operator.

Documents with Pobal show that CCVEC used the childcare allocation for Mallow Youthreach to help operate the crèche. It also closed the crèche in Fermoy to relocate its allocation.

However, Ms Russell said that, given the recruitment moratorium, only a private operator could provide enough staff to run the service required.

And, if Pobal agrees, she will explore the possibility of putting it out to tender.

Also, in response to news reports about the Mallow lease arrangements, a proposal was put from the board of management of Mallow Youthreach to commend the acting CEO for her work on its behalf.

In another development, Ms Russell conceded there had been shortcomings at CCVEC with regards to the transparency of its audit process.

She introduced a new charter that will ensure VEC members are briefed at each meeting on the work of the audit committee.

This had been instigated after complaints by Cllr Humphrey Deegan about the failure to circulate important documents.

CCVEC has been called to account for several issues that passed through its audit committee in recent years.

Yesterday’s meeting heard that the Department of Education has written to CCVEC twice in the last month regarding the cost of having the flagship vessel of the Omar B sail training programme stored in dry dock in Baltimore.

The VEC will also have to furnish the department with answers regarding the leases in Mallow and losses incurred because of mismanagement at Macroom Youthreach.