Death of former CIE chief executive

The former chief executive of CIE Group, Mr Michael McDonnell, died tragically on Sunday

The former chief executive of CIE Group, Mr Michael McDonnell, died tragically on Sunday. Aged 59, he retired from the State transport group on February 13th.

Garda sources said his body was found in the garage at his home. A crime is not suspected.

CIE paid tribute to Mr McDonnell and cancelled a board meeting planned for today as a mark of respect. He is survived by his wife, Noreen, and three grown children.

Mr McDonnell was appointed chief executive in May 1995 by the then Minister for Transport, Energy and Communications, Mr Michael Lowry.

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The group said he faced a major challenge in addressing past under-investment in public transport.

Later, he was responsible for the State's investment in transport under the National Development Plan.

Mr McDonnell was not close to the Minister for Public Enterprise, Ms O'Rourke.

She expressed sympathy to Mr McDonnell's family, citing his long career of public service.

His last year at CIE was difficult. Amid Government pressure to deliver on the investment programme, he faced strikes by bus and rail staff and took legal action against the transport group in an attempt to secure an enhanced salary.

He was also expected to be called as a witness in an inquiry by the Oireachtas Joint Committee for Public Enterprise and Transport into a signalling contract at Iarnrod Eireann.

Hearings are expected next month.

The signalling programme remains unfinished and committee members have power to compel witnesses to attend its hearings.

They want to discover why the rail company's contract with Modern Networks Ltd has already cost £25£40 million (#32#51 million) despite an initial valuation of £14 million.

Mr McDonnell's High Court action against CIE began last December.

That action - and a libel claim against the Sunday Business Post - was settled as part of his departing package, which was worth more than £420,000.

During that action, Mr McDonnell argued he was entitled to an improved contract agreed with CIE's former chairman, Mr Brian Joyce, before he resigned in March last year.

CIE disputed the contract because it was not sanctioned by the Department of Public Enterprise after Mr Joyce resigned.

Mr McDonnell's retirement package was understood to have reflected elements of his improved contract, which increased his salary to about £190,000 from about £100,000.

Before joining CIE, Mr McDonnell was assistant secretary in the Department of Transport, with responsibility for access transport and aviation.

He had previously worked at the Department of Finance and was a director at Aer Lingus, B&I, Shannon Maritime Developments, and Shannon Free Airport Development Company.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times