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Fraud inquiry into Empower training agency

Training Agency - Trading has ceased
Training Agency - Trading has ceased

A State-approved private training company in Kilkenny has ceased trading and is facing three investigations, including a Garda Fraud Bureau investigation.

Over 1,000 students could be affected, some of whom have paid over €2,000 each for courses.

The offices of Empower in Newtown House on the outskirts of Kilkenny city were closed today, with a notice on the door saying the company has ceased trading.

Empower has administered hundreds of education courses for the public and private sector across the country.

Efforts to contact its Managing Director Stephen Doran have so far been unsuccessful.

The company had ten staff and at least 12 tutors and is understood to have received more than €1m from State agencies FÁS and Skillnets since 2002.

Some tutors say they are owed between €3,500 and €5,000 in unpaid wages.

Students said they do not know where they stand regarding certificates or courses.

RTÉ News has obtained copies of Empower's customer receipts or fees from students from 22 July to September, which shows €244,000 was received in those few months.

A spokesperson for the statutory Further Education and Training Awards Council said 500 students were assessed in August and a further 500-600 are still on courses that were being provided by Empower.

Last month, FETAC suspended Empower's access to the council's certificates pending an investigation.

Empower received FÁS contracts worth €658,498 from 2003 to 2010 but has no current contracts with the State agency.

Founded in 2002, Empower Training achieved FETAC Quality Assurance Registration in 2006 and offered programmes in IT, health, childcare and other areas.

According to FETAC reports from 2009, the trainer deals with up to 800 students per annum from its Kilkenny base and runs courses in several other locations.

Skillnets said it has been investigating Empower since February.

In a statement to RTÉ News this evening, a spokesperson that Skillnets has already concluded a full and thorough internal investigation, which was supplemented by an independent report from external auditors.

The spokesperson said the entire investigation has not concluded yet, as the matter is potentially the subject of legal proceedings.