Local Authority: Limerick City and County Council
Issue: Alleged council fraud
In October 2020, councillors at Limerick City and County Councill received a highly unusual email from a senior council official.
"I can confirm that following a detailed investigation process over the last 9 months," the official said, "a staff member has recently been dismissed and the case has now been referred to the Gardai.
The official added, "As the case has now been referred to the Gardai, the Council will not be commenting any further."
There was no other information in the email about the background of the investigation.
RTÉ Investigates has identified the former staff member who was the subject of the allegations that led to the council investigation. For legal reasons, he cannot be named. He is a former employee who authorised work to be undertaken for the council and later for Irish Water under a Service Level Agreement between the two organisations.
RTÉ Investigates has established that the allegations relate to payments made to a small Limerick-based service company. Between 2012 and 2016, the employee approved payments by the council to this company totalling €860,000.
Records released to us show that the same public servant authorised €984,000 to be paid by Irish Water to the same Limerick company. The council subsequently said records specifically related to the council employee could not be released because they involved "potentially criminal matters".
In a statement, Irish Water said it is currently liaising with "An Garda Síochána in respect of this matter and is therefore not in a position to comment."
Meanwhile, minutes from a meeting of the council's Audit Committee in December 2020 state that the council’s investigation was initiated "on foot of an anonymous allegation", which had concluded, adding that the case had been referred to the Gardaí.
The minutes also stated that the Local Government Auditor had been informed about the matter while the council’s internal auditors, Deloitte, "were requested to carry out a Council wide review of governance issues with third party engagement."
Limerick City and County Council told RTÉ Investigates that as "this involves a live criminal investigation, it would be inappropriate to comment further".
Separately, Limerick City Council – which merged with Limerick County Council in 2014 – had dismissed another staff member over the misappropriation of council property, according to the 2008 Local Government Audit of the council.
This audit referred to the "misappropriation of funds" going on over a number of years and indicated that this involved the purchase of materials by the individual on behalf of the council. The audit said the individual concerned "accepted responsibility for his actions" and agreed to pay compensation but declined to "assist in the identification of monies misappropriated."
However, despite his admissions, the employee in question – who was dismissed – was spared a criminal investigation and a court prosecution.
The audit stated: "Consultations did take place with the Garda Siochana during the investigation, but in view of the fact that the individual concerned indicated his willingness to make reparations and that Senior Management was satisfied with the final settlement, the Garda course of action was not pursued."
The council recently refused to release records relating to this incident under freedom of information. One of its officials explained: "I note the emphasis on openness and accountability of a public body in the expenditure of public monies, however, I consider an individual carrying out the misappropriation of funds to be acting in their private capacity rather than on behalf of the Council."
"Accordingly, I do not consider the release of personal information including an individual's disciplinary record is overridden by the public interest in this instance."
