25/09/2009

Ex-Fás Chief 'Golden-Handshake' Probed

The Tanaiste has revealed that Rody Molloy, who resigned from Fás in a blaze of controversy, will be investigated in what may lead to criminal charges.

Ex-Director General, Molloy, resigned in November last after the initial revelations surfaced that himself and fellow FÁS executives had spent hundreds of thousands of the employment agencies budget on lavish holidays to the United States, which included first-class travel and expensive rounds of golf.

Now, after months of public outcry and the announcement of several investigations, a Dáil committee heard yesterday that the former director had resigned because he was given a €1 million "golden handshake" according to Department of Finance official, Tony Jordan.

Tánaiste Mary Coughlan announced today she is to review the increased pension entitlements given to former Fás director general Rody Molloy after he resigned, while according to a spokesman for the Tánaiste's office, legal advice has been sought on the issue.

The review comes in the wake of revelations that overspending and serious breaches of procedure were "deliberately" kept from the board of Fás by Molloy.

Fine Gael Front Bench Spokesman Alan Shatter TD has called on former FÁS Director General Rody Molloy to resign his latest role as Chairman of the Institute of Public Administration.

Speaking after it emerged that Mr Molloy would only resign from FÁS if his pension was boosted with a "golden handshake", Deputy Shatter also said it is extraordinary that Brian Lenihan would not comment about Mr Molloy’s ongoing role with the IPA.

"In spite of resigning as FÁS Director General in the wake of numerous spending scandals, Rody Molloy remains the Chairman of the Institute of Public Administration. According to its website, the IPA is the 'Irish national centre for development of best practice in public administration and public management'.

"In the light of the damning revelations over the past 12 months relating to FÁS, I believe Mr Molloy should now resign as Chairman of the IPA," he said.

(DW/GK)

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