Call for new guidelines over Molloy affair

The Public Accounts Committee is calling on the Minister for Finance to issue new guidelines covering payments to outgoing chief executives of State bodies.

The move follows the controversy over the departure package for former FÁS Director General Rody Molloy.

The Public Accounts Committee confirmed in a statement that it had met in private session yesterday to discuss documentation received from FÁS and the Department of Enterprise, Trade and Employment.

It says that it will await the result of a review ordered by the Tánaiste into Mr Molloy's retirement package.

However, it said that it wants changes in the terms of the package available to outgoing chief executives of state bodies as set down in the Department of Finance guidelines, which allow generous top-ups to be given to those contracts that are being terminated by boards.

The committee says it is concerned that the FÁS example is just one of a number of high profile departures from state boards.

It says that given the likelihood of future payments, it will be calling on the minister to review these arrangements and issue new guidelines.

The committee says it is also of the view that ministerial representatives on state boards are either not performing or may be prevented from performing an effective role as the 'eyes and ears of the Minister'.

It wants the provisions in Section 8 of new legislation on FÁS extended to all state boards.

It also plans to invite board member Niall Saul to report to the committee on his recent comments that the FÁS board was not being informed by the executive on certain issues.

It wants FÁS to provide details of the 23 internal audit investigations into procurement in the Corporate Affairs Division.

It also intends to afford the former Director of Corporate Srvices an opportunity to give evidence to the committee, if he so wishes.

Earlier, Tánaiste Mary Coughlan told the Dáil that it was the board of FÁS, not the Department of Finance, which gave Rody Molloy a car as part of his severance package.

She said she had been aware that the former director general of FÁS wanted to retain the car, an Audi A6, but it was not part of the package approved by the Department.

Ms Coughlan said it was not within her remit to give him a car, but the issue had gone to the FÁS board, which had given the car to him.