THE former managing director of Bord na Mona Mr Eddie O'Connor, who resigned last July, received a total of £242,000 in compensation for loss of office, notes to the Bord na Mona accounts show. The £242,000 figure includes his pension entitlements.
The compensation figure is far lower than had been thought when Dr O'Connor resigned after a long and protracted investigation into his remuneration package. After an investigation, Bord na Mona concluded that Dr O'Connor's package, which included £66,000 in unvouched expenses, breached Government guidelines on the pay of semi-state chief executives.
Following publication of reports by Price Waterhouse, which uncovered the unvouched expenses, Dr O'Connor was suspended as managing director on July 10th pending a further investigation. The suspension was imposed by the Government, not the Bord na Mona board, as the appointment and removal of a managing director of a semi-state company is a reserved function of the Government.
Three days after this suspension, Dr O'Connor resigned from Bord na Mona after reaching a settlement in full and final settlement of all claims by Dr O'Connor against the State, Bord na Mona, and the servants and agents of both". At the time, it was estimated that Dr O'Connor might have received compensation of between £750,000 and £900,000, but these estimates seem to have been exaggerated.
The Bord na Mona annual reports includes compensation for loss of office of £242,000 and this figure, according to finance director Mr John Hourican, includes Dr O'Connor's pension entitlements. The entire affair of Dr O'Connor and his remuneration package resulted in an exceptional charge of £548,000 for Bord na Mona.
The difference between Dr O'Connor's £242,000 compensation and the £548,000 charge is mainly legal and professional costs - largely fees paid to Price Waterhouse, which conducted two investigations into the former managing director's remuneration package.
The accounts also show that Bord na Mona reached a negotiated settlement of £1.15 million with the Revenue Commissioners. About £500,000 of this related to unpaid tax, the balance being interest and penalties imposed by the Revenue. The settlement related to motor and removal expenses over a 10-year period.
Managing director Mr Paddy Hughes said that a certain amount of these expenses had been deemed non-allowable against tax. He described the incident as "a technical issue between the Bord and the Revenue". Mr Hughes said that the motor and removal expenses involved a large number of employees, numbering over a hundred. He added that Dr O'Connor's motor and relocation expenses formed only a small portion of the settlement with the Revenue.
The settlement followed two separate audits by the Revenue Commissioners, the second of which involved an audit going back 10 years. "There was never any intention of fiddling tax and we are now applying the full rigour of the tax code," Mr Hughes said.
