A report into FÁS seen by RTÉ News outlines details of the serious conflict which arose at the agency as it investigated allegations of lavish expenditure.
It accuses the agency of instances where it put individual agendas ahead of the best interests of the staff and the organisation - and upholds complaints by former Director of Corporate Affairs Greg Craig.
The confidential report by accountancy firm Mazars is highly critical of the way FÁS handled expenditure controversies and the disciplinary procedures invoked against its former head of Corporate Affairs Greg Craig.
The report was completed in December but has never been published and was subject to the strictest confidentiality.
On foot of a further investigation into audit procedures since then, Mr Craig was sacked earlier this week.
Mazars found that the organisation had leaked confidential information - including medical details - about Mr Craig, as well as furnishing inaccurate information to the Public Accounts Committee which was investigating the affair.
The controversy over lavish travel and expenditure led to the resignation of former Director General Rody Molloy and the suspension of Mr Craig for a period.
In a number of cases, Mazars was unable to identify the individual officer responsible for a breach but finds against FÁS corporately.
The Mazars report upholds Mr Craig's complaint that his suspension was announced at the Public Accounts Committee on 27th November 2008 before he himself had been notified or given an opportunity to defend himself.
It queries the value of some internal audits given that Mr Craig - against whom complaints had been made and who was under investigation - was not asked for his view of the material which the internal auditors had accumulated.
It states that FÁS breached the Data Protection Act, the FÁS Code of Ethics, the FÁS Dignity and Respect at Work (Bullying and Harassment) Code, as well as procedures for the security and control of human resources files.
In January, FÁS confirmed in writing to Mr Craig and SIPTU that it accepted the findings of the Mazars report and acknowledged that a public statement would have to made based on its findings.
However that did not happen.
A further audit investigation - the Lynam investigation - was then set up to review previous audits and on foot of that process Mr Craig was dismissed earlier this week.
It is understood that he is taking legal advice.
FÁS said that over the past two years it had been working to deal with a wide range of legacy issues to ensure that it operates to the highest standards.
It says considerable progress is being made in this regard.
It ends by saying that it is not FÁS practice to comment on detailed HR matters relating to individuals.
