The Director General of the state training agency, FÁS, Rody Molloy, has resigned.

Mr Molloy's resignation follows a week of controversy and allegations of excessive expenses incurred by FÁS executives.

FÁS chairman Peter McLoone said Mr Molloy's decision to resign was made in the best interests of the organisation. The announcement came just before 11pm last night.

A resignation was probably only a matter of time, after Senator Shane Ross revealed in last Sunday's Independent that €643,000 was spent on transatlantic travel by senior executives in just four years.

But Mr Molloy's resignation is highly unlikely to end questions about financial controls at FÁS, especially as the Dáil Public Accounts Committee and the Comptroller and Auditor General were already investigating spending at the organisation.

FÁS has said it will continue to co-operate with the investigations, which will now want to know more about financial controls in the organisation, and how closely spending by senior management was supervised by the Board - and the Government.