A GAMBLE which did not work out resulted in a dredging company being paid over twice the £269,000 it had tendered for harbour works, TDs heard yesterday.
Members of the Dail Public Accounts Committee were told the contract had been awarded to a company for drilling, blasting and dredging operations at Burtonport, Co Donegal.
Work had been slow and the Department of the Marine had expressed concern to the contractor several times over the lack of progress. The Department believed the delays were due to inefficient work practice by the contractor.
In July 1994 the contractor put in a claim for £705,000, basing the increased cost on unforeseen working conditions. Following negotiations, it was agreed the company should complete the work for a sum of just over £560,000 less £121,402 already paid.
Mr Batt O'Keeffe TD (FF, Cork South Central) said it seemed easy for a low tender to be upped.
The Secretary of the Department, Mr Thomas Carroll, said he supposed a gamble had been taken to a certain extent and it had not worked out.
Mr John Ellis TD (FF, Sligo Leitrim) demanded to know the name of a company the Department had consulted before awarding the contract. Mr Carroll said they had consulted various companies on a confidential basis.
When Mr Ellis pressed for the information, Mr Carroll said he would review the request. Mr Ellis said the State had lost over £300,000 due to the Department's negligence. The committee had been told that the contractor had been recommended by a reputable company, which was a section of a semi state organisation.
Mr Carroll said he did not accept that there had been negligence.
It was decided that the committee would further consider the matter on February 8th.