The Department of Education is investigating allegations of fraud in State contracts, Minister Ruairí Quinn told the Dáil.

He was replying to Fianna Fáil TD Robert Troy, who said a whistleblower had claimed that a number of important State contracts had been awarded to legitimate operators, with the work carried out by subcontractors who were ignoring basic terms and conditions for employees. This was facilitating wholesale social welfare fraud and represented a failure to meet statutory obligations, said Mr Troy.

Mr Quinn said he had asked the relevant sections in his department to investigate the matter .

“I have instructed them to ensure that all of the claims the deputy has put on the record of the House are fully investigated.’’

Mr Quinn said he had been told that alleged breaches of the law were not happening.

“But I am still not satisfied that there is not some substance to the concerns of the whistleblower in question.’’

Concerned citizen

Mr Troy said he had been approached confidentially by a concerned citizen who had made serious allegations about the operation of contracts awarded and managed by the department.

An example was work carried out at St Patrick’s College, Drumcondra, Dublin, which was awarded to a major building contractor who operated legitimately in the State. However, the work was being done by a subcontractor registered outside the jurisdiction.

“The whistleblower claims that the subcontractor is paying rates which are far below the market rate, and is facilitating workers to continue to receive a social welfare payment.’’

His information, he said, was that the Contractors Administration Services had not entered the St Patrick’s College site.

This, he said, allowed the subcontractor to undermine legitimate builders, undercut builders who were trying to employ people legitimately and make PRSI contributions, take money out of the social protection system which had seen cuts to child benefit and respite care allowance, the jobseeker’s rate for those under 25 years, and flew in the face of the plan for jobs to help tradesmen get back to work.

Whistleblower

Mr Troy said the whistleblower had told Mr Quinn and Minister for Social Protection Joan Burton about the alleged fraud.

Mr Quinn said what Mr Troy had recounted was a clear instance of the law being broken and blatantly so. The problem had persisted for many years in regard to some builders on some sites.

“I am absolutely determined, in so far as I can, to ensure that the sites in question are operating correctly, and that money raised from taxpayers is properly spent in accordance with the law.’’

He said he would make further inquiries on the matter.