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27/03/2003
Civil servant fired over administrative 'deficiencies'
A civil servant has been sacked after an audit inquiry into business agency 'Into The West' - which was set up to encourage business growth in the west of the province - uncovered poor administration and unsound financial practice.
Responding to the report's findings today, Economy Minister Ian Pearson confirmed that a series of misjudgements occurred over the administration of funds during the setting up of the agency in the 1990s.
The report revealed that the company's board did not have proper procedures for using credit cards and that invoices and receipts were not provided for a significant proportion of the expenditure.
Funded by five regional agencies, including former small business agency LEDU, representatives of 'Into the West' made many overseas trips, with much of the spending paid for by credit card.
With no policies on corporate hospitality and travel expenses, it is believed that around £20,000 could have been saved using public sector rates for expenses.
Cash withdrawals amounting to more than £5,000 remain to be accounted, the report added.
Responding to the report, Economy Minister Ian Pearson said: “The audit examined a range of issues which covered use of credit cards, business visits abroad, and the degree of responsibility and control exercised by the ITW Board, including the role of LEDU officials. Deficiencies were found on all counts.
“It is clear that there were deficiencies in basic control mechanisms and that many of the accountability requirements which are vital where public money is involved were absent. This is deeply regrettable. The Board of the Company failed to fully discharge its remit and in relation to financial matters relied heavily on administrative support from the former LEDU which left much to be desired.
“I am extremely disappointed that this should have happened in a project which was of itself so innovative. I can, however, assure you that we have taken decisive action, including a review of similar projects to ensure that such breaches in control and monitoring cannot recur. In regard to 'Into the West' and this wider context, Invest NI has already taken formal disciplinary action in regard to a number of staff."
Alliance finance spokesman Seamus Close said he was not surprised to learn of financial improprieties and that the project "wasn't so much about bringing jobs and investment 'Into the West', as it was about going 'into the red'".
He added: "When you see taxpayers' money being spent on £60 pizza, 'Into The West' starts to look more and more like a cowboy operation.
"We should not be satisfied with lower-level civil servants being punished, and I would say that a culture of change should start at the top, so that if there have been failures, then the heads that roll should be those in charge. What we are talking about here are accounting officers and chief executives."
SDLP MLA and member of the Assembly's Public Accounts Committee, John Dallat also criticised the project and said further light needed to be shone on the matter.
He added: "We need to establish why abuse on this scale went undetected for so long and only came to light through a whistleblower. There are lessons to be learned.
"This is work that a local Public Accounts Committee should be doing and I want to see this top of the agenda as soon as devolution is restored."
(MB)
Responding to the report's findings today, Economy Minister Ian Pearson confirmed that a series of misjudgements occurred over the administration of funds during the setting up of the agency in the 1990s.
The report revealed that the company's board did not have proper procedures for using credit cards and that invoices and receipts were not provided for a significant proportion of the expenditure.
Funded by five regional agencies, including former small business agency LEDU, representatives of 'Into the West' made many overseas trips, with much of the spending paid for by credit card.
With no policies on corporate hospitality and travel expenses, it is believed that around £20,000 could have been saved using public sector rates for expenses.
Cash withdrawals amounting to more than £5,000 remain to be accounted, the report added.
Responding to the report, Economy Minister Ian Pearson said: “The audit examined a range of issues which covered use of credit cards, business visits abroad, and the degree of responsibility and control exercised by the ITW Board, including the role of LEDU officials. Deficiencies were found on all counts.
“It is clear that there were deficiencies in basic control mechanisms and that many of the accountability requirements which are vital where public money is involved were absent. This is deeply regrettable. The Board of the Company failed to fully discharge its remit and in relation to financial matters relied heavily on administrative support from the former LEDU which left much to be desired.
“I am extremely disappointed that this should have happened in a project which was of itself so innovative. I can, however, assure you that we have taken decisive action, including a review of similar projects to ensure that such breaches in control and monitoring cannot recur. In regard to 'Into the West' and this wider context, Invest NI has already taken formal disciplinary action in regard to a number of staff."
Alliance finance spokesman Seamus Close said he was not surprised to learn of financial improprieties and that the project "wasn't so much about bringing jobs and investment 'Into the West', as it was about going 'into the red'".
He added: "When you see taxpayers' money being spent on £60 pizza, 'Into The West' starts to look more and more like a cowboy operation.
"We should not be satisfied with lower-level civil servants being punished, and I would say that a culture of change should start at the top, so that if there have been failures, then the heads that roll should be those in charge. What we are talking about here are accounting officers and chief executives."
SDLP MLA and member of the Assembly's Public Accounts Committee, John Dallat also criticised the project and said further light needed to be shone on the matter.
He added: "We need to establish why abuse on this scale went undetected for so long and only came to light through a whistleblower. There are lessons to be learned.
"This is work that a local Public Accounts Committee should be doing and I want to see this top of the agenda as soon as devolution is restored."
(MB)
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