Grant recipients to be asked to explain spending following Arts Council scandal

Pics for Patrick O’Donovan interview Elaine Loughlin. Patrick O'Donovan is the Minister of Further and Higher Education, Research, Innovation and Science having been appointed in April 2024. Picture: Sasko Lazrov, Photocall Ireland supplied by Department of Education

All sporting, arts, and cultural bodies funded by the Department of the Arts are to be asked to explain any large spending in recent years, in a bid to flush out any issues similar to the Arts Council IT system scandal.

The secretary general of the Department of the Arts is writing to all such organisations asking that they provide evidence that money was correctly spent on capital and investment projects.

It is understood the letter will be issued in the coming days, with organisations expected to respond as quickly as possible.

It comes as the Arts Council was found to have spent €6.7m on an IT system that was never delivered, something that Tánaiste Simon Harris called “a very clear and flagrant breach of the public spending code”.

It was found that the Arts Council opted for the most expensive tender when awarding the contract to Codec which was responsible for “system design and build” of the system.

Under 2016 regulations, contracts should be awarded on the basis of the most economically advantageous tender.

The project, which had an initial cost of €3m and spiralled to more than double the original cost, was eventually axed in 2024 having been deemed not fit for purpose.

It is understood the terms of reference for an external review of governance and culture in the organisation are being drafted and are close to completion. The Government ordered the probe after the overspend was uncovered by State financial watchdog, the Comptroller and Auditor General.

It is understood Arts Minister Patrick O’Donovan wants to make sure that all projects funded by his department are fully implemented and represent value for money. It is expected that the letter, drafted by the secretary general in his department will weed out any other issues.

A spokesperson for the department confirmed it is to issue correspondence to relevant bodies under its aegis in the coming days in relation to the delivery of capital projects.

Sport Ireland, one of the bodies, told the Irish Examiner that while it had not yet received a letter, it has been informed by the Department to expect one in the coming days.

There is pressure on the Government to get a handle on the manner in which public money is being spent.

Labour leader Ivana Bacik claimed the Department of Arts and Culture has been “dogged by controversies about overspends and lack of oversight over semi-state organisations”.

Former arts minister Catherine Martin confirmed that the department received the Arts Council 2023 annual report and financial statements last summer.

Despite this, Mr Harris said the overspend was not raised with the previous government.

According to Ms Martin: “A decision was taken for the Department to undertake a detailed examination of the Arts Council’s project and to present the 2023 Annual Report and Financial Statements to Cabinet alongside the completed examination and its recommendations.”

The controversy, which has rumbled on over the past two weeks, has left the Government once again facing difficult questions about apparent waste of public money. Last year, the €336k Leinster House bike shed and €1.4m security hut at Government buildings caused a major public outcry.