Taoiseach praises 'honourable' FÁS chief after resignation

Taoiseach Brian Cowen today praised FÁS chief Rody Molloy for resigning and described him as an honourable public servant.

It is the second time this week Mr Cowen has rowed in behind the embattled boss amid allegations of out-of-control spending at the training and enterprise agency.

On Monday Mr Cowen said he had confidence in the director general after revelations the state body spent €643,000 over four years on transatlantic travel.

Mr Molloy’s resignation after eight years at the helm of the agency was accepted last night by Employment Minister Mary Coughlan, who is on a trade mission to the Gulf region.

“That confidence was justified,” Mr Cowen told the Dáil.

“He is an honourable public servant and he did the honourable thing on behalf of the organisation that he led.

Mr Cowen said the top executive stepped down of his own volition and that it was wrong to reduce his career to this controversy alone.

“He has taken accountability decisions in relation to this issue and I commend him for it.”

The agency, which has a €1bn budget, is already at the centre of an inquiry by the Dáil Public Accounts Committee over spending irregularities.

Fine Gael leader Enda Kenny asked for assurances that Mr Molloy would receive no severance payments or “golden handshakes” until he co-operates fully with the Public Accounts Committee.

But Mr Cowen said Mr Molloy’s severance arrangements will be in line with public sector norms and that the Director General had been co-operating with the committee.

“That’s the normal procedure, and he will have that entitlement the same as everybody else in that position.”

Mr Kenny also said members of the FÁS Board should consider their future.

“This organisation has a very bad name now,” he said.

“It’s done some brilliant work over the years. The position now in my view is that you should ask the board to consider their positions.”

Mr Kenny also highlighted other high spending in the agency including two banquets in a Dublin hotel totalling $17,000.

Mr Cowen, who described Mr Molloy as “an excellent public servant” on Monday, was yesterday forced to admit that the spending should not have occurred.

Information revealed by independent Senator Shane Ross detailed a $400 bill for a nail bar in Florida and other receipts for golf outings and pay-per-view hotel movies.

Molloy defended taking his wife on trips with him and claimed he was entitled to travel first class but traded down to business class when his spouse came along.

Labour Party leader Eamon Gilmore said Mr Molloy had done the honourable thing by resigning and wished him well.

“From time to time... when things go wrong we do get resignations of senior public servants,” Mr Gilmore said.

“However, what we do not get, particularly from Fianna Fáil in Government, is any resignation by ministers or any sense that there is ministerial accountability.”

Mr Gilmore said FÁS was accountable to the Enterprise Minister, and the minister was accountable for spending.

He said the Labour Services Act 1987 stated expenses for FÁS had to be approved by the Enterprise and Finance Ministers.

Mr Gilmore asked if respective Enterprise Ministers approved the spending regime at the agency.

But Mr Cowen said expenses were a matter for the FÁS Board and the Department of Enterprise.

The Public Accounts Committee are due to meet FÁS officials again tomorrow.

An investigation by the Comptroller and Auditor General is also being carried out into the state agency.