The National Education and Welfare Board has brought a High Court action alleging a former employee, who has since resigned, was paid some €136,405 in bribes or secret commissions.
The proceedings were initiated by the board against its former information technology manager, Neil Ryan, Hazelwood, Donabate, Co Dublin, who had held the rank of assistant principal officer; IT Upgrade Ltd, Newbridge, Co Kildare, a company which supplied information technology goods and services to the board, and Peter O'Grady, a director of IT Upgrade, also with an address at Tirellan, Roseberry, Newbridge.
The board has alleged dishonesty and unjust enrichment in its action against Mr Ryan. It is seeking orders that he is personally liable to the board for any money allegedly received by him as bribes or secret commissions from the other defendants.
In its proceedings against the other two defendants, it is seeking judgment in the amount of bribes and secret commissions allegedly paid by them to Mr Ryan and damages for fraud and/or deceit.
The board also contends all the defendants are liable for some €230,000 spent by it in investigating the alleged fraud. Those expenses include sums of €158,666 to Ernst & Young, €33,880 to Pricewaterhouse Coopers and some €35,983 to Arthur Cox solicitors.
Yesterday, in a preliminary application, Mr Justice Frank Clarke heard arguments on behalf of IT Upgrade and Mr O'Grady that insufficient particulars had been supplied of the claims against them.
Paul Gardiner SC said no defences had been filed at this stage and his side wanted to see the defences. He said further particulars of the claims would be given prior to trial and the defendants would be under no disadvantage at the trial.
Mr Justice Clarke said he would rule later this month on the issue of whether further particulars were required to be filed in an alleged fraud case in a situation where a statement of claim, but no defences, had been filed.
The board claims that Mr Ryan, who was employed by it under a contract from May 1st 2003, had on various dates between then and August 12th 2005 entered into contracts with IT Upgrade on behalf of the board for the purchase of goods and services.
It claims that, dishonestly, in breach of fiduciary duty, and without the knowledge or consent of the board, Mr Ryan had received for himself from either IT Upgrade or Mr O'Grady sums totalling €136,405. It claims those monies were paid by cheque, many in the sum of €5,000 on dates from April 30th, 2003 to February 15th, 2005.
The board says it is unaware whether further payments were made to Mr Ryan by way of bribes or secret commissions and would be seeking to inquire into that. It claims Mr Ryan arranged for IT Upgrade to invoice the board for goods at list prices while paying reduced prices to the suppliers of such goods.
