CHAIRMAN OF Fás Peter McLoone resigned yesterday because he had not received public support from Tánaiste Mary Coughlan two weeks ago.
Speaking after a meeting that lasted for more than six hours, Fás board member Des Geraghty told reporters Mr McLoone felt he was “in an invidious position” and “felt he should not stay without the full support of the Government”.
The remaining directors said they will stand down as part of an orderly transition to a new board.
“In keeping with the wishes of the Tánaiste they indicated they will remain in office until a new board has been appointed in accordance with the enactment of the relevant legislation which is expected in November,” a board statement said.
Earlier this year, Ms Coughlan asked the board to stay on until new legislation was enacted.
However, more recently she said she would accept the resignation of the board if it was offered to her.
Mr McLoone at that stage contacted the department and was given a copy of a proposed press statement in which she would say she wanted the board to remain in place until the new legislation was in place. The proposed press release was circulated to the other board members, but it was never issued by Ms Coughlan.
Yesterday, Mr Geraghty told reporters that Mr McLoone felt he was “in an invidious position . . . He had felt the Tánaiste was fully supportive but it emerged that, for political reasons in Government wasn’t issued”.
Mr Geraghty emphasised that there was no question of any misbehaviour on Mr McLoone’s part. “We regret he felt he had to” .
The board expressed its appreciation for Mr McLoone’s leadership and the “dignity and integrity he had displayed dealing with the many issues affecting the organisation during his term of office and, in particular, in the last year”.
The appointment of a new chairman is now a matter for Ms Coughlan. The board said it will continue its programme of reforms, including work on 22 audit reports concerning spending controls in the former corporate affairs division. The division has now been abolished.
Chairman of the board’s audit committee Niall Saul said 10 of the reports are completed and the other 12 will be finished by the end of this month. Mr Geraghty said the reports will go to the core of the controversies at Fás. “We are anxious that the truth comes out about all of it . . . Let the finger point where it will in terms of responsibility.”
Mr Saul said the issue of disciplinary action will arise once all the reports are complete.
Mr Geraghty said that unlike the situation with the banks, there was no question of Fás directors having any personal gain. It was a non-executive board and most directors worked on committees without a right to extra expenses.
On the issue of executive class travel, Mr Saul said only three or four directors flew executive class at the taxpayers’ expense. “There were two times as many Ministers and three times as many journalists” who flew executive class.
Mr Geraghty said Fás had a diligent board “but if we missed things as a board, then we regret that”.