Government 'in a bind' over Paschal Donohoe's election expenses

Sipo dealing with complaint about donation of services to his 2016 campaign

Public Expenditure Minister Paschal Donohoe has recused himself from all matters relating to the Standards in Public Office and ethics legislation, pending the outcome of a complaint to that office.

The controversy around Paschal Donohoe’s 2016 election expenses has “put the Government in a bind”, some in Fianna Fáil fear, though party sources are not calling for the public expenditure minister to step down.

Mr Donohoe has recused himself from all matters relating to the Standards in Public Office (Sipo) and ethics legislation, pending the outcome of a complaint to that office about the donation of services to his 2016 general election campaign.

There was little appetite among Fine Gael’s coalition partners yesterday to see the Dublin Central TD resign as minister, but sources said that the failure to properly account for a commercial vehicle's use, valued at €140, and the labour of six men involved in putting up posters, valued at €957, “does not look good”.

One senior Fianna Fáil source said Mr Donohoe’s recusal puts the Government “in a bind” with regards to overhauling ethics legislation, with another saying that the timing of the revelations was particularly concerning, given that Mr Donohoe’s colleague Damien English resigned as a junior minister just last week.

“Last week Paschal wanted to oversee the updating of Sipo powers following the resignation of a colleague after disclosure failures,” said the source.

Now he can’t do this, his job, because of his own disclosure failures.”

Fianna Fáil’s leader, Tánaiste Micheál Martin, told RTÉ’s News at One that Mr Donohoe had provided a thorough account of his dealings.

“Sipo should now be allowed carry out their investigation and the minister allowed due process while he engages with Sipo on this matter,” said Mr Martin, while Green Party deputy leader Catherine Martin also supported Mr Donohoe.

However, Sinn Féin spokeswoman on public expenditure and reform, Mairéad Farrell, said Mr Donohoe’s attempt to explain his flouting of election rules as an oversight “doesn’t wash” and that “his sums don’t add up”. She said the value ascribed to the services was “a fraction of the commercial cost”.

A spokesperson for Mr Donohoe said the labour figure had been supplied to Mr Donohoe by businessman Michael Stone, who had hired the men and that the van figure was worked out using a comparable van hire service.

LDA appointment

Mr Donohoe’s spokesperson also said the minister did not have any hand in Mr Stone’s appointment to the Land Development Agency (LDA) three years after the donation.

Mr Stone was appointed to the agency’s board in 2019 by then-housing minister Eoghan Murphy, but an LDA spokesperson said that he does not take a salary. He is entitled to a salary of €15,750.

The spokesperson said: “Michael Stone is a member of the board of the LDA. He was appointed to the interim board of the agency shortly after its formation in January 2019 and reappointed in December 2021 when the current entity was established pursuant to the commencement of the LDA Act 2021.

"In line with other state agencies, members of the LDA board can receive remuneration and can claim certain travel and subsistence expenses. Mr Stone has waived his remuneration fee since the outset of his involvement with the agency and does not claim expenses."