The Taoiseach, Brian Cowen, has again defended the so-called golden handshake given to former FAS director general Rody Molloy last year.
Reports this morning say internal memos have revealed that the €1.1m pension top-up awarded to Mr Molloy breached key Department of Finance guidelines.
At least three officials from the department reportedly warned that the deal fell outside what was allowed by the guidelines.
Fine Gael leader Enda Kenny raised the matter in the Dáil this morning, but Mr Cowen continued to stand over the actions of his Government in awarding the massive pay-off to Mr Molloy.
He said the severance arrangement was approved under the provisions of the Labour Services Act 1987 and that was the legislative basis upon which the decisions were taken.