Údarás cancels controversial holiday homes sale

ÚDARÁS na Gaeltachta has reversed a controversial decision to sell a holiday home complex to four Connemara-based businessman for €1.4 million despite receiving an offer for €1.9m.

At a previous meeting, the Gaeltacht development body decided to sell the 13 holiday homes to the businessmen, including former Fianna Fáil councillor and senator Nicolas Ó Conchubhair, despite the fact that it was the lowest of three tenders submitted. The two failed bidders threatened legal action after the decision was announced.

However, following a meeting in Waterville, Co Kerry, yesterday, the 20-member board is to abandon the tendering process entirely and is to put the property back on the market at a future date.

However, Údarás deputy chief executive Pádraig Ó hAoláin rejected suggestions that the board had initially made a mistake and said that under the terms of the tender documents it did not have to accept the highest tender, or any tender.

"Some members felt the board should stand by the original decision and send it to the EU Commission for evaluation. However, this would involve considerable delay and it's unlikely the decision would be approved," Mr Ó hAoláin said.

He also said a further issue arose because of the significant difference between the highest bid and the selected bid.

Mr Ó hAoláin explained when a State body sold an asset to be used for business activity, for less than the highest bid received, it could be regarded as State aid and the people concerned could be liable to re-imburse the State.

Because of the difference between the highest and lowest tenders in this case, the consortium could be liable to pay back the State.

In making its original decision, the Údarás board went against a recommendation from its management to sell the complex, at Eanach Mheain, to the highest tender a consortium from Meath, Dublin and Leitrim, led by accountant Paul McKeon, for 1.95m.

The second highest bid was a €1.5m bid from the Irish language organisation, Gael Linn, which planned to develop the complex for educational purposes.

The lowest bid, €1.45m, which came from the Connemara businessmen, including Mr Ó Conchubhair, who had planned to upgrade the homes to four-star rating.

Last night, a spokesperson for the businessmen said they were disappointed at the decision and would be seeking legal advice.

Údarás management was annoyed when the board initially decided not to go along with their recommendation.

The matter was raised in the Dáil, on March 9, and Rural and Gaeltacht Affairs Minister Eamon Ó Cuív ordered a report into the sale.

A total of 11 tenders were received for the property, but the number was reduced to three by Údarás management and the three were put before the February meeting for a decision.

Údarás is disposing of the complex as part of a plan to shed non-core properties.

Meanwhile, Mr Ó hAoláin said bookings had been received for the Eanach Mheain homes for the coming season and the complex would continue to be run as it had been for the past few years.