Molloy severance deal 'in line with norms'

A senior Department of Finance official has defended the severance package awarded to former FÁS Director General Rody Molloy.

Public Service Management Division Secretary General Ciarán Connolly was speaking at the Dáil's Public Accounts Committee.

Watch Committee proceedings live

Mr Connolly said it was recognised that Mr Molloy's position was untenable following an interview on the Today With Pat Kenny radio show and it was in the best interests of the organisation for him to step down.

He said Mr Molloy had indicated that he would be prepared to step down under terms that he himself found acceptable.

Mr Connolly said a decision was taken with consideration of what would have been granted to Mr Molloy if he had been dismissed and taken legal action.

He said Mr Molloy had not threatened legal action but would have been entitled to do so and this was taken into account in deciding his termination package.

Mr Connolly said a protracted legal case would have damaged the reputation of FÁS and added that Mr Molloy's eventual package was in line with public sector norms.

The Vice Chairman of the PAC said the terms were not in line with the norms.

Darragh O'Brien said under normal circumstances Mr Molloy would have been entitled to a €77,000 per annum pension instead of the €110,000 pension that he got.

Mr O'Brien also said the lump sum he got was 40% (€78,000) above what he would have got under a normal severance package. He said the Department should have sought Government approval for the package.

Committee Chairman Bernard Allen asked why FÁS had not sought advice from the Attorney General and suggested that the Department of Finance had caved in.

Mr Connolly denied that this was the case, but admitted that it was he who decided not to seek Government approval for the package.