Public Accounts Committee questions on NUIG procurement

Some €5.2 million of expenditure on goods and services at NUI Galway during one financial year did not comply with public procurement guidelines.

The lack of compliance with procurement rules was identified by the Comptroller and Auditor General (C&AG), and has been highlighted again at the Public Accounts Committee (PAC).

Fianna Fáil Senator, Marc McSharry, described the lack of compliance as “frightening”.

PAC chairman, Seán Fleming, a Fianna Fáil TD, said it was “extraordinary”.

The €5.2 million for goods and services that was not properly procured related to expenditure in 2016/2017 and was for payments to 81 suppliers.

NUIG President, Ciarán Ó hÓgartaigh, has written to the PAC, confirming the university has taken some steps to comply with contract procurement rules.

The PAC was told that more than thirteen contracts worth in excess of €100,000 were awarded to companies without proper compliance with procurement rules.

Some of the noncompliance was identified by C&AG testing and the rest was identified by NUIG.

Speaking at the committee, Deputy Fleming said: “G4S Secure Solutions Ireland Ltd was paid €373,302 without competitive procurement. That is extraordinary. Tomkins and Co was paid €241,074, Micromail Limited was paid €208,989, Core Computer Consultants Ltd was paid €180,100 and Swimworld (which operates the Kingfisher Gym) was paid €127,980 without competitive procurement. I know there are not many procurement options for Swimworld’s tender but I cannot understand some of the others.”

Some of the other contracts identified were with Croí West of Ireland Cardiology Foundation (€128,375); Top Oil Galway (€110,314); Enterprise Ireland (€80,337); Winters Property Management (€52,210); Rent An Irish Cottage Management Ltd (€73,668); A&L Goodbody Solicitors (€38,033); Henderson Fire and Safety Ltd (€50,895); Sharp Alarms Ltd (€86,155) and Athru Consultancy Ltd (€30,504), which provides PR and other advice.

Professor Ó hÓgartaigh said the university has taken positive action since the shortcomings were discovered in an audit. He said action has been taken so that 39% of the €5.2 million total, “is now governed by a current procured compliant contract”.

He said “action has been initiated” to put contracts in place for a further 26% of the total, which amounts to around €1.3 million.

“The university is currently reviewing the 35% of this total (€1.7m) to develop a procurement plan. This figure represents over thirty separate suppliers where multiple transactions have taken place across multiple budget holders,” said Prof. Ó hÓgartaigh.

He added that the university had “doubled its investment in procurement training programmes and workshops to assist all budget holders attain and maintain compliance”.

The PAC has agreed to discuss the matter more in-depth at a later date.