Skip to main content

Ireland - What A Total Waste - It's A Scandal...

Pressure on Cowen as millions go to waste...

Millions of euro of taxpayers' money has been lost by state bodies and agencies, the report from spending watchdog, the Comptroller and Auditor General (C&AG) said.

In his first report, new C&AG John Buckley starkly uncovered the extent of the Government's failure to properly control its dwindling finances.

It was published as ministers prepare to slash public services in next month's budget, which has been brought forward by six weeks, in a bid to combat the deepening economic downturn.

The report revealed that the tax authorities had to make an embarrassing settlement of €1.7m to themselves for unpaid taxes, after failing to tax travel benefits awarded to their own staff. Mr Buckley's report exposed many of the same inadequacies as his predecessor, as he raised direct and specific concerns.

He identified:

"Shortcomings in the management of the State's financial resources".

"Questions as to the efficient use of public funds".

"Weaknesses and deficiencies in the procurement procedures and practices".

"Significant cost savings that could be generated".

The Health Service Executive (HSE) came in for the most stinging criticism of all, as it was lashed for being "fragmented, disjoined and difficult for patients to access".

The report said HSE management failed to act promptly on an overrun of €245m.
He also sharply criticised the managers for assuming they would be "bailed out" with extra funding.

"There was considerable delay in addressing the emerging deficit. In a number of instances where significant overruns were occurring, it could have been expected that specific action would have been taken but the review found no evidence that any such action was taken."

The Comptroller identified a plethora of areas where the taxpayer was being let down, including:

garda cars being bought but not used for a year.

councils building up over €1bn in levies.

border-duty bonuses being paid to soldiers, even after the peace process.

exorbitant management fees being paid on a savings scheme.

no competitive tendering in sections of the prisons service.

flood-relief scheme money not being spent for two years.

Despite Mr Cowen's promises to reform the public service, all of these incidents happened during his watch as Finance Minister.

Response
Mr Cowen's successor, Brian Lenihan, had no response to the highly critical report last night
. He instead referred it to the Dail Public Accounts Committee.

The Taoiseach himself also chose not to respond to the report's findings. However, his officials referred to the upcoming report on public-sector reform, which Mr Cowen says will outline actions to be taken.

The Opposition said the report pointed to the Government's continued failure to manage resources.

Labour deputy leader Joan Burton said Mr Lenihan should read the report, as it highlighted a number of areas for reform which "would undoubtedly lead to significant savings".

Fine Gael enterprise spokesman Leo Varadkar said many of the items related to wasted spending by state bodies, agencies and quangos.

"Fine Gael has already highlighted the problems associated with the explosion of quangos."

Report by By Fionnan Sheahan and Aine Kerr - Irish Independent

What a total waste - it's a scandal - no wonder the country is going down the tubes!

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

Varadkar says it’s ‘not the worst thing’ that Ryanair is buying up homes for staff

25 of the 28 units in a new development at Fostertown Place in Swords were purchased by Ryanair for their cabin crew. TAOISEACH LEO VARADKAR says he does not have any issue with Ryanair or other companies buying up almost entire housing estates for their staff. He said there is a big difference between companies like Ryanair bulk-buying houses and apartments compared to investment funds. “We are building over 30,000 new homes now every year,” he said. “If you think about it, that’s 70,000, 80,000 or 90,000 bedrooms every year so we are finally seeing housing being built on scale,” Varadkar said. “We want to scale that up this year and next year as well because we do have a rising population and family sizes are getting smaller, so we need more housing and we are making progress,” he said. “In relation to Ryanair specifically, I don’t think it is the worst thing that a company would buy accommodation for their staff. It’s not the first time this has happened, it has be...

Irish Property Overvalued By 30%...

Irish property could still be overvalued by 30 percent... Irish house prices increased by around 330 per cent between 1996 to 2007 – a bubble of impressive scale and duration, but a bubble nonetheless. Plenty of outside observers saw the writing on the wall and said so, but they were overlooked in the Celtic Tiger gold rush. The European Central Bank (ECB), the Organisation for Economic Co-operation and Development (OECD), the Financial Times, the Economist and the International Monetary Fund (IMF) all spoke of dire portents early and often. They were ignored. Cheap and easy money arrived in Ireland just as the tiger economy geared up. The country adopted the euro and access to a large pool of low-cost European finance with it. When the bubble burst Ireland's main domestic financial institutions were wiped out and European institutions and the IMF took over the nation's financial affairs. So the question now is has the country reached the end? According to a report i...