FÁS Payout To Chief Was 'Inconsistent'

The Labour Party have said today that it was "beyond doubt" that the €1.1 million payout to the ex-Fás chief was inconsistent with the government’s own guidelines.

Labour's Spokesperson on Social and Family Affairs, Roisin Shortall made the comments today, after the Irish Independent revealed Internal memos demonstrating the €1.1m "golden parachute" deal for former Fás chief Rody Molloy broke key Department of Finance rules.

According to the paper's report this morning, the memos show three different Department of Finance officials warning against a payout deal being approved as it fell outside of what was allowed in the guidelines.

Rody Molloy resigned amid a torrent of scandal at the state training agency, where a number of executives were accused to taking excessive advantage of expenses. The agency is currently under an extensive Gardaí investigation.

Ms Shortall said that, despite the denials from both the Taoiseach and the Tanaiste, it was now beyond doubt that a million euro plus golden handshake, to which Mr Molloy had no entitlement, was negotiated for him at the expense of the Irish taxpayer.

"We now need an explanation as to why, despite memos from three separate Department of Finance officials warning that such a deal was outside the guidelines, the package was agreed at a more senior level in the Department of Finance," Ms Shorthall said.

She added: "There is also an obligation on the Minister for Finance to clarify the extent of his knowledge of the deal. Was he aware that the Assistant Secretary of his Department was sanctioning Mr Molloy’s deal in the face of strong advice available to him that it was outside the guidelines? I find it difficult to believe that such a senior official would go against the advice available to him without first seeking political clearance."

Ms Shorthall went on to say that it was time for Brian Cowen, Mary Coughlan and Brian Lenihan to "come clean" on their knowledge of and involvement in the "shoddy deal".

(DW/KMcA)