Trimmed-down FÁS appointed after scandal

The Government today appointed a new slimmed-down FÁS board of directors promising a root and branch overhaul of the scandal-hit state-training body.

As well as the leaner 11-member board new laws will also provide for tougher accountability and governance controls for top brass, including protection for whistleblowers.

The agency was mired in controversy following revelations of massive overspending by top bosses, prompting previous board chair Peter McLoone to step down.

Mary Coughlan, Tanaiste and Enterprise Minister, said the appointment marks a fresh start for the body.

“The significant governance changes implemented by this legislation, together with the appointment of a new board, sends a clear signal to the public of the root and branch cultural change in accountability and transparency under way at the organisation,” she said.

“Today is an important day for the taxpayer and for the clients and staff of the organisation.

“It marks a fresh start for FÁS as the state’s key delivery agency for the training and activation of our workforce.”

Former board chairman Peter McLoone formally stepped down last October over a series of scandals on wasteful spending of taxpayers’ money at the employment agency.

Revelations by a public spending watchdog that millions of euro were overspent by FÁS bosses on advertising and promotions between 2002 and 2008 prompted demands for the board’s resignation.

The Labour Services Act, signed today, provides for:

:: a reduction in the size of the FÁS board from 17 to 11.

:: introduction of a rolling system of appointments to the Board.

:: making the Director General accountable to the Oireachtas.

:: requiring the disclosure of conflicts of interest by directors and staff of FÁS

:: banning directors and staff of FÁS from any involvement on matters where they have a conflict and allowing them to be sacked if they break the rule.

:: protection for whistleblower members of staff who report serious wrongdoing in the organisation.

The new chairman will be former senior director of pharmaceutical company Bristol Myers Squibb, Michael Dempsey.

Former Fianna Fáil TD Tony Dempsey is also named on the board, as is 'Dragon's Den' star Sean Gallagher

Appointed in January 2006, the previous board was scheduled to run until December 2010.