Civil servant ignored 60 letters about issues with Arts Council’s failed IT project, committee told

Outgoing Arts Council director Maureen Kennelly said it was 'very disappointing and frustrating' that correspondence was not sent to more senior civil servants. Picture: Tristan Hutchinson

A senior civil servant did not act on serious concerns around the Arts Council’s failed €6.6m IT project, despite being contacted almost 60 times.

Separately, the Department of Culture has paused further funding to the Arts Council to allow it to pursue legal cases against contractors who worked on the project.

At the Oireachtas Arts Committee, Fianna Fáil’s Peter Chap Cleere raised concerns that the overall costs of the project, including legal costs and a new system, could see spending of over €10m.

Outgoing Arts Council director Maureen Kennelly said just under 60 pieces of correspondence had been sent to one senior civil servant at the department about issues with the IT project. She said it was “very disappointing and frustrating” that correspondence was not sent to more senior civil servants.

She said it seemed as if issues with the IT project were not being escalated up the chain of command and this had been a “great surprise”.

Committee chair, Labour's Alan Kelly, asked the Department of Culture’s Secretary General, Fearghal Ó Coigligh, why these letters were not escalated, with the latter admitting it was a failure identified by the department.

He said:

We should have said stop much earlier.

Mr Kelly said it is “unbelievable” that correspondence was not passed up the chain. “That just sounds like a department that is totally and utterly dysfunctional,” he added.

Mr Kelly said he was “deeply, deeply worried” by Mr Ó Coigligh’s assertion that he did not agree. Mr Ó Coigligh confirmed the legal cases taken by the Arts Council are now being reviewed by the Attorney General.

Asked repeatedly by Senator Garrett Ahearn and Mr Kelly to clarify the department's position, Mr Ó Coigligh confirmed the department believed the “Arts Council should not incur any further costs on legal action at this point” until a review is complete.

Maureen Kennelly said a €60,000 has been spent on legal costs to recoup funds from four companies involved in the failed IT project. The Arts Council would not comment on the expected total cost of all four legal cases, with deputy director Martin O’Sullivan saying it was “not guesswork”.

Asked by Mr Cleere if there had been mismanagement of public money, Mr Ó Coigligh said there were “failures”.

Issues with the abandoned IT project first came to light in February, with the plan originally expected to cost in the region of €3m for a bespoke grant application system. However, the project ballooned in costs and eventually cost the State €6.6m before it was cancelled.

An internal department investigation was carried out and culture minister Patrick O’Donovan has since begun an external review of culture and governance at the Arts Council.

The council is currently still using its previous system, but has sought to purchase an off-the-shelf system, which would cost an initial €1.5m to install. There would then be an annual €241,000 subscription fee for the service. However, the Arts Council confirmed to the committee the bespoke system would cost €560,000 per year to operate.

Maureen Kennelly departure

Ms Kennelly is due to leave her position as director of the Arts Council, after Mr O’Donovan refused to sanction a further five-year term.

Asked by Fianna Fáil TD Malcolm Byrne whether or not Mr Ó Coigligh had advised Mr O’Donovan not to renew her contract, Mr Ó Coigligh said the matter was a ministerial decision, despite repeated questions on what advice he provided.

Asked further by Mr Kelly, Mr Ó Coigligh said there was a formal submission from the department on Ms Kennelly’s future.