Fraud, poor estimate cited in report on OPW

TWO CASES of fraud at the Office of Public Works (OPW) have been uncovered, as well as a disparity of €207 million between what the office valued certain properties at and what they were sold for.

The figures are among issues raised in a report by the Comptroller and Auditor General on the OPW.

The Comptroller and Auditor General's value for money report also found the office had overestimated its projected spending on office accommodation by about €57 million in 2005, by €55 million in 2006, and by an estimated €35 million in 2007.

Addressing the issues when he appeared before the Dáil Public Accounts Committee yesterday, OPW chairman Seán Benton said he would in the coming days provide the committee with detailed explanations on a number of mainly property-related headings, but not the two cases of fraud.

The cases of fraud were uncovered in two of the OPW's 747 heritage sites when it was discovered attendance figures did not tally with bank lodgements. A sum in the region of €33,000 was involved and gardaí were called in to investigate. Mr Benton told the committee he was precluded from commenting on the cases because of the investigation.

In a second issue relating to the operation of visitor centres, Mr Benton said a figure of €397,000 included in the accounts as admission charges did not include a figure of €900,000 in outstanding debt which was recouped from tour operators in 2006. Mr Benton told John Curran (FF) he could not immediately explain where the €900,000 was in the accounts, but would forward the information to the committee.

In relation to the disposal of OPW property, Mr Benton told Mr Curran that a small number of properties which had a book value of €13 million had been sold for €220 million - some €207 million above estimate. The properties had included a site on Shelbourne Road in Ballsbridge, for which a property developer had paid €171.5 million, which was the main element in the disparity.

A further four properties had been assigned to affordable property partnerships in accordance with the Government strategy, but while Comptroller and Auditor General John Purcell said he would like to discuss the values placed on these properties, Mr Benton said the OPW was not a party to the deals done between the Affordable Homes Partnership and private developers.

Mr Benton acknowledged that in a number of cases where the OPW had set about building properties for the decentralisation of Government departments, the office had instead decided to lease accommodation. In some cases this was for expedience while in others, it made more financial sense. But he agreed that leases were not subject to the same regulations as a tendering process, although he maintained that value for money was always the guiding criterion.

Mr Benton told the committee he would forward the details of all such property transactions in coming days. As he recalled some six properties were involved: in Navan, Co Meath; Clonakilty, Co Cork; Ballina, Co Mayo; Carrick on Shannon, Co Leitrim; Limerick; and Kilrush, Co Clare.