Lenihan 'approved Molloy's severance package'

It has emerged the Minister for Finance Brian Lenihan approved terms of a generous severance package for former FAS Director General Rody Molloy.

Senior official at the Department of Finance Ciaran Connolly has been giving evidence to the Public Accounts Committee.

He said he personally signed off on the deal but Mr Lenihan was aware of the terms.

Mr Molloy received a €1m top-up to his pension before leaving the agency.

He was also paid a tax-free lump sum of over €300,000 and he received a taxable ex-gratia payment of over €100,000.

Mr Connolly said he is satisfied the package is in accordance with Government guidelines.