The Department of Agriculture has admitted that a proper appraisal of the controversial Punchestown Agricultural and Equestrian Event Centre in Co Kildare, was not carried out before it was decided to provide nearly €15 million in State funding five years ago.
The admission is contained in a review by a steering group of department officials, which has however defended the decision to fund the project and says there is a positive financial benefit flowing from it.
It also notes there has been no further drain on State resources in the operation of the event centre, which has had a positive net value under a cost-benefit analysis by the group.
Officials from the Department of Agriculture are to outline the report at a hearing of the Public Accounts Committee today, at which they are expected to be closely examined on the report.
The review came on foot of a recommendation by the Public Accounts Committee (Pac) in a highly critical report last year on the project, which found that a formal appraisal of the project should have been carried out under Department of Finance guidelines before the project received funding approval.
The investigation of the event centre by the committee sparked a major political controversy over the role of then Minister for Finance Charlie McCreevy, who approved the €15 million funding for the centre, which is in his constituency.
The review also admits that as of June, a deal on the restructuring of the ownership of the racecourse had yet to be completed due to a dispute with the course owners, the Kildare Hunt club.