The Government has initiated an investigation into the awarding of contracts by the Office of Public Works to a company whose managing director had business links with an OPW official.
The investigation by PricewaterhouseCoopers began in early January on the instruction of the Minister of State for Finance, Mr Tom Parlon. It followed a report in the Sunday Business Post which stated that the official was involved in the awarding of a contract to Pearl Corp, a company which provides audio-visual services at Dublin Castle.
The official, Mr Desmond Swords, was a co-director of three other companies with Pearl Corp's managing director, Mr Frank White. It is understood that Mr Swords was a member of a three-person committee which evaluated tenders and awarded a recent contract to Pearl Corp.
Since 1995, the OPW has paid some €813,000 to Pearl Corp in connection with its work at Dublin Castle.
Pearl Corp is based at Vanomer House, Lower Kimmage Road, Dubin. The same address is used by Hardware Connections Ltd and the Hardware Property Co Ltd. Mr White is a director of both companies.
Companies Office records show that Mr Swords was a director of these companies in the past. He ceased being a director of Hardware Connections Ltd and Hardware Property Ltd on December 9th last year.
Another Companies Office record shows that Mr Swords and Mr White both resigned as directors from a separate entity, the Simultaneous Interpretation Co, on September 27th 2002.
Mr White has declined to comment on the process, stating on Wednesday that he had not been a party to the investigation. Mr Swords did not return a call yesterday.
Mr Parlon told the Dáil on Tuesday that an investigation into the procedures applied to the procurement of services from Pearl Corp was almost complete.
The terms of reference include documentation of the "outside business interests and relationships, including directorships" of a named individual. PwC was also asked to "consider the extent to which these may have represented a conflict of interest with regard to procurement of audio-visual services having regard to national and EU procurement regulations".
Mr Parlon said that the OPW "kept under regular review the prices being charged in the market for the services in question and was satisfied that it was availing of the most cost-effective service".
Contracts for the supply of goods and services should be awarded by way of competitive tender where practicable, he said. "There is also an obligation on all personnel involved in the tendering process to ensure that any potential conflict of interest in that process is disclosed in good time."
However, Mr Parlon added that the services of technicians might be required on up to 10 occasions per week, "and therefore the situation would not require the issuing of a formal tender on every occasion".
