Pay irregularities at half of school building sites audited

More than half of school and college building sites where pay matters have been investigated for the Department of Education have been referred on to tax, social welfare and other authorities.

The seven projects notified to the Revenue Commissioners, Department of Social Protection (DSP) and National Employment Rights Authority (NERA) were the subject of some of the 19 complaints last year about 14 construction sites funded by the Department of Education.

As part of its €2.1bn spend on schools and colleges over five years, the department wants to ensure compliance with pay and conditions clauses in public works contracts used on all major projects.

Arising from a system announced last April, 13 audits have been completed by Contractors Administration Services (CAS) who were appointed to carry out audits on foot of non-compliance complaints.

Of around 120 major education builds on site last year, 22 were the subject of complaints made up until the end of December.

Other than the sites audited, six complaints related to projects not being funded by the department or which were almost complete, two are being referred to CAS for review, and one was sent directly to NERA, which was already proposing to review the project.

As a result of the 13 audits, five projects have been referred to the Revenue Commissioners, one to the DSP and one to NERA.

In one case, CAS found non-compliance with record-keeping and shortfalls in payments due to workers, which were brought to the attention of the contractor and the back monies were paid to the workers.

“While I know that the vast majority of contractors are totally compliant, I want to ensure that all workers on Department of Education building projects are being paid what they are due,” Education Minister Ruairi Quinn said.

He said there is also an obligation to ensure that, as well as value-for-money in the price paid for the work, all appropriate income tax and other contributions are paid in respect of those working on projects.

The minister said he plans to identify a project going to site this year for CAS to undertake a monitoring service throughout the build period.

The department said its tendering processes require firms or individuals to declare that they have met their obligations on payment of tax and social welfare contributions.

It said it checks before finalising contracts if companies are under review by NERA, DSP or the Revenue.

A complaint form is available on the Department of Education website to bring its attention to alleged non-compliance with pay and conditions clauses.

* See exa.mn/26l