C&AG to examine development of postcode project

The Comptroller and Auditor General has confirmed his office is examining aspects of the development of the State’s postcode project.

Seamus McCarthy appeared at a meeting of the Public Accounts Committee last week, during which he said he expects a report on his office’s findings on Eircode in September.

A spokesman for the Comptroller and Auditor General said the examination will focus on the business case for the project; the outturn against budget to date; the performance against planned milestones to date; and procurement and contracting issues.

The spokesman said the examination will take media reports, court cases and correspondence to the Public Accounts Committee about Eircode into account, but that it has not been undertaken as a result of submissions from a third party and that the C&AG “may decide to report on the matter”, depending on its findings.

“The postcode project has been proposed over a long period and is expected to incur a significant outturn. This office has been monitoring the development of the project in the course of the audit of the appropriation accounts of the Department of Communications, Energy and Natural Resources,” the spokesman said.

Mr McCarthy’s comments relating to Eircode were prompted by correspondence to the PAC from Gary Delaney, chief executive of Loc8 Code.

Mr Delaney wrote to the committee to contradict comments by Eamonn Molloy, assistant secretary at the Department of Communications, Energy and Natural Resources, in relation to his company’s unsuccessful bid for the Eircode project.

The Cork-based company was blocked from bidding for the Eircode licence because its annual turnover was less than €40m and subsequently complained about this preclusion to the EC, which found in favour of Loc8 Code.

The EC found the process should have made allowances for smaller firms and instructed the State to “avoid similar errors in future”.

Mr Delaney rejected a number of Mr Molloy’s comments, including his claim the EC’s file on the complaint has been closed and Mr Molloy’s contention the State was not offered free use of Loc8 Codes.