The Board of FÁS and representatives of various Government Departments have been questioned by the Dáil Public Accounts Committee.
Members focused on the package offered to the former FÁS Director General Rody Molloy on his departure from the State training agency.
The committee was told that Mr Molloy was only willing to resign if he got a golden handshake.
The former Director General got an additional sum of between €80,000 and €90,000 in his pension package, over and above what he was entitled to, when he resigned as head of FÁS.
Committee chair Bernard Allen inquired about who signed off on his pension. Department of Enterprise Secretary General Sean Gorman said he was responsible.
Mr Gorman told the Committee that Mr Molloy's pension had been increased to give him credit for another four-and-a-half-years' service, despite the fact that he resigned.
The outgoing FÁS Chairman Peter McLoone said he met Mr Molloy the day after the former Director General's interview with Pat Kenny.
He revealed there was a long day of talks: they were seeking to get him to recognise his position was untenable. Initially he did not want to resign.
Mr McLoone said FÁS was reliant on what his contract had provided for.
Tony Jordan of the Department of Finance told the committee that the package of terms was brought to his Department.
He said this was against the background of the Tánaiste wanting his urgent departure and the fear that this could be delayed by possible litigation.
Mr Allen said it appeared Mr Molloy was only willing to resign if he got a golden handshake.
Budget cut
Meanwhile, the new FÁS Director General Paul O'Toole has told the Public Accounts Committee that the advertising budget has been reduced by 90% this year.
The reduction follows revelations in a recent report by Comptroller and Auditor General John Buckley.
Mr Buckley told the Committee that the State training agency went 45% over budget in the period from 2002 to 2008, spending €48m on advertising and promotions.
He also referred to the fact that over €600,000 was spent on an advert that was never broadcast.
