All activities of the Arts Council are to be subjected to an external review after it accrued millions of euros in losses in pursuit of an unsuccessful IT project.
Arts Minister Patrick O’Donovan announced the governance review after it emerged that the Arts Council has spent 6.6675 million euros on a failed IT development project.
The overspend was brought to the attention of the Department of Culture last summer, when Catherine Martin held that portfolio. It was not publicly disclosed at the time.
Former Culture Minister Catherine Martin (Brian Lawless/PA)
It prompted the secretary general of the Department to initiate an examination of the Arts Council project last year which returned 36 recommendations.
The report found that the Arts Council was not prepared for the scale of the project and did not put in place adequate resources to deliver it.
The examination also found that the oversight, monitoring and reporting arrangements by the department over the lifespan of the project were inadequate.
Minister O’Donovan said he had expressed “deep concern” to the chairperson and director of the Arts Council over the project.
He said there are a range of “fundamental questions” about governance and culture within the Arts Council as to whether the corporate governance framework reflects best governance practice for state bodies
He added: “Assurance is also required that the culture of the Arts Council, at all levels, is open and transparent and that it engages with all stakeholders, both internal and external, in a manner appropriate to its statutory remit to develop the arts.”
Funding for the Arts Council has increased by 75% in recent years to 140 million euro this year.
Mr O’Donovan said it is vital that the taxpayer has confidence that these resources are being used appropriately and that waste is being avoided.
“I want to see these questions addressed as a matter of urgency and accordingly I have instructed my department to commence an external review of governance and culture at the Arts Council,” he said.
“The review will extend not only to capital projects but to all activities and expenditures under the remit of the Arts Council and will commence shortly.”