Coughlan knew Molloy wanted to keep FAS car

Enterprise Minister Mary Coughlan has admitted that she was aware the former director general of FAS wanted to retain his company car.

The matter was raised in the Dáil this morning by Fine Gael leader Enda Kenny.

It only emerged in recent weeks that Rody Molloy was allowed to keep a €20,000 Audi owned by FAS when he quit as head of the state training agency late last year.

He also received a pension top-up worth more than €1m, despite resigning because of high spending on foreign travel, accommodation and entertainment.

Former FAS chairman Peter McLoone is quoted this morning saying that the Department of Enterprise was aware the retention of the company car was part of Mr Molloy's severance agreement.

Speaking in the Dáil this morning, Ms Coughlan admitted that she was aware Mr Molloy wanted to keep the car, but said it was not within her remit to sanction the move.

She said the retention of the car was approved by the FAS board, while her department and the Department of Finance sanctioned the €1m "golden handshake".