Quinn orders investigation into alleged construction fraud

Minister for Education Ruairi Quinn has ordered an investigation into alleged social welfare fraud involving departmental construction contracts, the Dáil was told today.

Mr Quinn said he was aware of the allegations made by a whistleblower and he had asked the relevant sections of the department to investigate the issue.

He had been told, he said, 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,’’ he added

The Minister was responding to Fianna Fáil TD Robert Troy, who said the whistleblower had claimed that a number of important State contracts had been awarded to legitimate operators, with the work carried out by sub-contractors. The sub-contractors were ignoring basic terms and conditions, facilitating wholesale social welfare fraud and failing to meet statutory obligations, he added.

An example, he said, was work carried out at St Patrick’s College, Drumcondra. The contract had been awarded to major building contractor operating legitimately, but the work was being done by a sub-contractor operating outside the jurisdiction.

The whistleblower, said Mr Troy, claimed the sub-contractor was paying rates far below the market rate and facilitating workers to continue to receive social welfare payments.