Fine Gael leader Enda Kenny has claimed that gardaí are investigating irregularities at the State training agency FÁS.
Mr Kenny told the Dáil the Comptroller and Auditor General had criticised the way the agency's €9m advertising budget was being spent, adding that subsequent inquiries by Fine Gael's Leo Varadkar had revealed that the gardaí were involved.
However, the Director General of FÁS has denied that there is any garda investigation into the agency.
Rody Molloy said the agency's own internal audit had discovered irregularities relating to one of its contractors and gardaí were now investigating that firm.
Speaking at a function in Dublin, Mr Molloy insisted that the fact that the allegations surfaced as a result of FÁS's internal procedures showed the agency had nothing to hide.
Mr Kenny went on to say in the Dáil that there was a clear conflict of evidence on the issue between a senior FÁS executive and Mr Molloy.
'In one specific instance €100,000 of taxpayers’ money was spent on advertising in one local newspaper alone,' the Fine Gael leader said.
'This went completely against FÁS's normal practice to advertise only in the national media.'
'When asked why such an unusual commitment was made to a local paper, the documents show a straight conflict of evidence between the senior FÁS official – who claimed it was under direction from the Director General – while the Director General rejects that assertion completely,' Mr Kenny added.
In response, Taoiseach Brian Cowen said he had the highest regard for the Chief Executive of FÁS, but that it would be inappropriate to comment further if gardaí were involved.
