PPARS project costs and contracts
Kenny questioned the €160 million PPARS expenditure, including consultancy payments and alleged payments to Channel Islands accounts. The Taoiseach said the HSE review and Comptroller and Auditor General investigation would examine costs, contracts, beneficiaries and payments, with a report expected.
There is a number of subjects one could raise today, including the price of cars. I would like to get closure on several matters, the first of which may be of relevance to the Tánaiste and Minister for Health and Children. The Taoiseach is aware, as it has been raised before during Leaders' Questions, that the famous PPARS project has cost more than €160 million of public money. Much of the focus on this has gone back to two major consultancy firms and the fees they received. However, the sorry story of the PPARS project is not just confined to large consultancy companies. Following a number of months of investigation into this, I have learned that 14 companies were paid almost €7 million in respect of staff recruited for the PPARS project.
One of those companies, known as Blackmore Group Assets Limited, received €2 million from the HSE in respect of the recruitment of seven staff. We all know about accountability and transparency. Blackmore Group Assets Limited is not registered in this State or in the United Kingdom. It uses a privately owned trust company in Guernsey to bill the HSE; I have invoices here. Blackmore Group Assets Limited is a shelf company with no substance. When these points were put to the HSE last week for investigation, it insisted that Blackmore is a United Kingdom based recruitment company. The HSE refused to accept the onshore connections or that there are any tax implications in the way Blackmore Group Assets Limited has been paid.
My charge is that the HSE either does not know about this, is incompetent about this or has failed to come clean about it. Although some Ministers might consider €2 million a small amount of money, it was public money paid to a company I cannot trace. I cannot identify any of the directors or where they are located beyond having an address of a shelf company in Guernsey. I am concerned that Irish law should be fully adhered to, that Irish tax law is fully complied with and that the public should know who is getting paid its money for the recruitment of staff.
I do not suggest that the staff recruited were unable to do the job. However, I would like to know the situation in respect of this particular shelf company registered in Guernsey. If the Taoiseach has all the information from the Tánaiste, I hope he can answer these questions. Who are the directors of this company, where are they located and what background check was done on them? Why did they receive €2 million of public money when nobody can trace their location?
Comment on this
The new system for management control of information and communications technology, ICT, projects in Departments was announced by the Government in October to ensure such projects are managed to best practice standards. As part of that process, the Department of Finance has just introduced a peer review for these projects. Three such projects have been selected to commence immediately on that basis. The peer review process will comprise senior personnel from within and outside the public service with a record of successful management in ICT projects. The peer review team should help to reduce the risk of sub-optimal outcomes, such as cost and time overruns and unexpected long-term maintenance and support costs. The team can suggest that the scope of the project should be modified or that it should be rephased into multiple releases or terminated. A potential list of reviewers has been drawn up by the Department.
Comment on this
A review group has been established to review the delivery of PPARS, as Deputy Kenny is aware, so that it meets the requirements of the Health Service Executive. The work of the review group, which is ongoing, will involve trying to determine the most cost-effective and efficient option for the HSE and evaluating the resource and the schedules in it. The estimate of €35 million that was provided by the HSE relates to the system's running costs, as originally envisaged. The Department of Finance is looking for substantial reductions in the running costs in the context of this review.
In respect of the company mentioned by Deputy Kenny and the other companies, the head of the HSE and his senior colleagues are examining all the contracts and the background to them. They are assessing how all such issues were followed through. I cannot speak about individual contracts until we see the report. I have been informed that procurement policies were followed in this instance. I will be honest with Deputy Kenny. I do not know whether the company in question was registered in Dublin, Guernsey or the UK. I do not know and I will not guess.
Comment on this
I do not have any facts about the individual company. I am aware that all the contracts in this regard are being examined. All the records of how and where things were done will be considered to ascertain whether the money was dealt with appropriately. That will be included in the report I have mentioned and also in the report of the Comptroller and Auditor General. The latter report, work on which is ongoing, is due to be published before Christmas, to the best of my knowledge. All the other issues relating to this matter are being examined. I know that Professor Drumm hopes to have all this work done on time.
Comment on this
I do not expect the Taoiseach to be able to give answers on all the minutiae of this matter. When I submitted a freedom of information request on this issue last July, the Health Service Executive responded by giving certain information. The Tánaiste subsequently gave further information, which had been made available to her by the HSE, in response to a parliamentary question.
If the HSE had been a private company, questions would have been asked in the House about payments being made to accounts in the Channel Islands. The response of the HSE has been to state that the company in question was a recruitment agency based in the UK. It has been confirmed to me by the UK crown office that the Channel Islands are crown dependencies and not parts of the United Kingdom. An invoice for €4,900 issued by Blackmore Group Assets Limited gives the address and e-mail address of the company, but nothing else. Nobody in this House, the Department of Health and Children or the HSE can pinpoint who the directors of the company are. Who checked the company out? Why did it receive public money of €2 million for the recruitment of seven personnel? If we are in the business of spending taxpayers' money on the recruitment of personnel, surely we can find out where the money went and why €2 million was paid to a shelf company.
It is understandable that the Taoiseach would not have all the answers when answering questions in the House, but I would like him to be fully acquainted with all the facts of this case. The Tánaiste, who may have all the answers, should put such information on the record so that people can know to whom their hard-earned taxes are being paid.
Comment on this
I appreciate the Deputy's remarks. All the PPARS contracts are being examined as part of the Comptroller and Auditor General's investigation. I understand there was a procurement mechanism and the staff in question were working. The issues which are under investigation include ascertaining who the beneficial owners of the companies were, to whom the moneys were paid and how the structures worked. I am aware that senior personnel within the HSE have indicated that they will compile a full report on foot of all the documentation available to them going back a number of years. They must give information to the Comptroller and Auditor General, but they also intend to report on all aspects of the matter. It is obvious that these issues will arise again as soon as the information is made available.
I understand a number of contracts are in question involving a substantial amount of money. I think the cost of the entire PPARS project over approximately eight years to the end of last year was approximately €117 million. It is estimated that €53 million was provided this year. I do not have a breakdown between capital and revenue. It was intended to complete the project by the end of next year, as Members are aware. The HSE has undertaken that it will fully examine all the contracts and give full details on them in the form of a report. I cannot give any more information to the House until we get such details.