OVER £1.3 million was allocated to Co Westmeath VEC to reduce deficits run up in five years between 1989 and 1995, the Minister for Education has revealed. The VEC was also involved in eight projects without the required approval of the Department of Education.
The payments, which include an allocation of £500,000 to reduce last year's deficit, are the largest made to any of the State's 40 VECs.
In spite of the allocations, the VEC has remained in deficit since 1990. The audited deficit rose to a peak of £698,113 at the end of 1993; the unaudited deficit at the end of 1994 is given as £578,161.
Ms Breathnach said the auditor had expressed reservations about the accounts presented for the years 1990 to 1993. These related to some of the assets and also the comprehensiveness of the liabilities shown in the financial statements.
"The Comptroller and Auditor General has sought the observations of my Department in relation to a number of issues which he raised with the VEC as a result of the audit of the 1994 accounts. My department is finalising its observations for the Comptroller and Auditor General," the Minister told Mr Paul McGrath (FG) in a written Dail reply.
Among the projects in which the VEC was involved without having obtained Departmental approval was the purchase of a training centre in Montbard, France. This cost £65,602. The hosting of a conference in nearby Beaune on a school/industry links scheme incurred a deficit of £15,000, although it was supposed to have been organised on a self financing basis.
The VEC also spent £30,000 on a property in Delvin for use as a Youthreach centre, again without approval. A further £9,000 was spent on a property in Ballynacargy, also for Youthreach purposes.
The provision of a computer course in conjunction with the National Rehabilitation Board led to a charge of £99,378, which could not be met from the approved allocation.
The VEC also ran an arts resource centre and an information technology centre without approval, and it continued spending money on a school/industry links pilot project in 1994, even though the EU scheme which was funding the project ended in 1993. The costs incurred on these projects are not yet available.
The special allocations made to reduce the deficit of Co Westmeath VEC were: £180,000 in 1989; £40,000 in 1992; £200,000 in 1993; £425,000 in 1994; and £500,000 in 1995.
"Revised control systems and procedures are in place in the VEC and I am satisfied that Co Westmeath VEC is operating efficiently and within authorised limits," Ms Breathnach said.
The Minister added that the acting chief executive officer, Mr Jeremiah Cronin, was dealing with the issues raised in the report of the inspector appointed in 1994 to look into the management and operation of the VEC's finances.
The inspector, Mr Seamus Parceir, found evidence of a number of apparent irregularities in payments procedures operated by the VEC and concluded the committee's finances were in crisis.
Mr Parceir also found that Westmeath VEC claimed £400,000 from the Department of Education for rent on premises over 20 years when the rents had not been charged during the period they were alleged to have arisen.
Under the 1930 Act which established the VECs, the committees are required to remain within budget, and to adhere to approved rates of pay, staff allocations, expenses, etc. Other functions, such as the raising of loans and the purchase of property, may only be done with the express approval of the Minister.
