Consultants to the Government have criticised an "accountability deficit" at a publicly funded body responsible for the disbursal of €100 million to local development projects.
In a report to the Minister for Community, Rural and Gaeltacht Affairs, Mr Ó'Cuiv, the consultants, Indecon, outlined "significant concerns" about cost-effectiveness and accountability.
The consultants were examining the operation of Area Development Management Ltd (ADM). The organisation was set up in 1992 to disburse EU and Government funds for local development projects. It managed some €100 million in funding last year, according to a Fine Gael TD, Mr Fergus O'Dowd. A spokeswoman for Mr Ó'Cuiv said he planned to make an announcement today about the future of the organisation
The consultants highlighted "an unusual degree of linkage" between ADM and the organisations it funds. "Such linkages under the current structural arrangements present a potential divergence from best practice. This raises important issues concerning accountability," they said.
Demanding radical reform at the organisation, they called for a greater Government control and said consideration should be given to a new name and identity for ADM.
However, Mr O'Dowd rejected the call for on the Government to appoint the chair and board of directors in the organisation.
