Ahern to wait until CSID report is completed

The Taoiseach has said the investigation into the circumstances surrounding the company selected to operate the national aquatic…

The Taoiseach has said the investigation into the circumstances surrounding the company selected to operate the national aquatic centre will have to be completed before the Government would decide what action to take.

Mr Ahern, asked yesterday if heads would roll as a result of a dormant company being chosen to run the centre, said "questions need to be answered first" in the investigation being conducted by the Attorney General. Mr Michael McDowell is to prepare a report for the next Cabinet meeting on Wednesday week.

Mr Ahern said he only became aware last week that a dormant company was involved in the project, even though his Department had responsibility for the matter at the time. He said on RTÉ's This Week programme that the functions of chairman and chief executive of the Campus and Stadium Ireland Development (CSID), both held by Mr Paddy Teahon, would be separated. Which one would relinquished would be a matter for the board.

"It's not a question of it being a disaster. There are questions that should have been brought to the attention of my department, the Minister for Sport's department and the board. They were not. I think Paddy Teahon has accepted that he should have informed the board," he said.

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Mr Ahern was asked if he had confidence in Mr Teahon. "I think it is not an issue of confidence; it is an issue we need to get answers to the questions. The board looked at this and said there was information that should have been passed to them. Paddy Teahon and others accept that. The corporate governance issues, EU procurement issues were followed, that is my understanding from the board. The board are a very competent group of people and I would accept that."

However, he said, there were other questions which needed to be answered so that we are fully satisfied before we move on and whatever other decision we will take in the cold light of day.

The Fine Gael leader, Mr Michael Noonan, said the inquiry was a stalling tactic. Mr Ahern had been personally and totally linked with the stadium project.

"As the project now displays all the attributes of another Fianna Fáil fiasco - a dormant shelf company, links to the Virgin Islands, massive budgetary overruns - the Taoiseach is turning his back on a responsibility that is principally his."

The Labour Party leader, Mr Ruairí Quinn, said yesterday that Mr Ahern and CSID should publish all papers relating to the Abbotstown project so that a proper public analysis could be made.

Mr Ahern said that he and the Tánaiste, Ms Harney, had decided a number of months ago, on the basis of the report carried out by consultants High Point Rendel, that the CSID staff and expertise needed "strengthening up". "The staff in relation to chief executive officer, the splitting of the functions, directors of finance, other issues had to be dealt with . . . splitting of the roles is something that has to be done and will be done."

It had been decided, he said, that the CSID board had acted in "absolute good faith in this" and the Government had no difficulty with it. The board was unhappy not to be informed about the dormant company, but was satisfied EU regulations had been followed.

However, he said, there were corporate governance issues and legal contractual issues which had to be raised with the administration.

"The Minister for Sport has asked the AG and his staff to do that. He will be talking to them in the course of the week and reporting to the next Government meeting to try to sort out precisely how this issue was addressed by the committee that looked at it back at the time they awarded this contract."

Mr Ahern also said he and Ms Harney "want to make sure we do things properly".

Dublin Waterworld, which will operate the Abbotstown centre, "strongly disputed" projections that the centre would generate about €1.91 million in annual profits, according to a shareholder, Mr Kieran Ruttledge. Mr Ruttledge is chief executive of the Tralee Aquadome and he pointed out that he held shares worth €635 in the company.