VEC seeks to remove ‘whistle blower’

A VEC has asked Education Minister Ruairí Quinn to remove a committee member who helped to expose a number of financial problems within the group.

The chairman of County Cork VEC (CCVEC), Gerry Kelly, did not give reasons for his request but asked for the minister to remove Cllr Humphrey Deegan. Mr Quinn has yet to reply.

In 2011, Mr Deegan resigned as chairman of CCVEC’s audit committee after he felt the body had withheld information on losses at Macroom Youthreach.

He has also prompted queries from the department into other aspects of spending and corporate governance.

Mr Deegan said if the committee believes he has been disruptive, it is because CCVEC failed to answer routine questions about its finances.

“I just keep asking the questions and they keep dodging the answers. This all goes back to answers not being given and the management are not dealing with routine requests for information.

“It still the case that the 2011 accounts for the VEC have not been signed by the Comptroller and Auditor General and you have to ask why.”

Mr Deegan, a Fine Gael councillor in Clonakilty, has had numerous clashes with CCVEC management.

Following his resignation as chair of the audit committee, Mr Deegan spoke out about the mismanagement uncovered in an internal audit of Macroom. This has promp-ted an ongoing investigation by the comptroller.

Late last year, CCVEC accepted it had lost money due to failures at Macroom, where students were paid more than €115,000 in allowances to which they were not entitled.

Subsequently, Mr Deegan referred the matter to the Revenue Commissioners.

In January, CCVEC confirmed it had offered to make a settlement with Revenue as a result of the problems uncovered.

Recently, Mr Deegan clashed with the chairman, Mr Kelly, after he accused him of assisting in a cover-up by not making financial documents readily available to committee members.

Mr Deegan also wrote to the department to highlight Co Cork VEC’s failure to circulate the minutes of its audit committee to members.

As a result, CCVEC adopted a new open audit charter which it said would help improve transparency.

Last year, Mr Deegan also drew the department’s attention to the decision of Co Cork VEC to agree a series of unauthorised leases and loan arrangements at a Youthreach centre in Mallow.

It has since emerged that CCVEC agreed two separate lease purchase arrangements with Mallow Credit Union to help fund facilities in Mallow.

This carried effective interest rates in excess of 9% and were not approved by the department.

Inquiries by the department into this issue are ongoing.

Mr Kelly did not respond to a request for comment.